Hyundai and GM Explore Strategic Partnership to Share Resources and Expand Market Presence
Sources indicate that Hyundai Motor Group and General Motors (GM) are close to finalizing a deal for collaboration. The agreement would see Hyundai provide electric commercial van models to the U.S. automaker. In return, GM might allow Hyundai to sell its pickup trucks under the Hyundai brand in North America.
This potential partnership, according to sources familiar with the discussions, represents a broader strategic move. The two automotive giants are navigating an increasingly competitive global landscape, including rising challenges from Chinese electric vehicle (EV) manufacturers.
This is a strategic alliance to reduce costs and improve market reach.
Several avenues for collaboration are under consideration. This includes joint purchasing and development initiatives involving computing chips, next-generation batteries, and battery materials.
Van Production and Market Expansion
Hundai is considering an agreement that could see it produce commercial vans sold under both the Hyundai and GM brands. These vans would initially be imported from South Korea, according to documents reviewed by Reuters and a person familiar with the talks. However, options being explored include manufacturing the vans in North America as early as 2028, either through a new plant, expanding an existing facility, or outsourcing production.
Pickup Truck Integration
The discussions also center around the potential for GM to share its mid-sized pickup trucks, the Chevrolet Colorado and GMC Canyon, with Hyundai. While Hyundai also wants to sell versions of GM’s full-sized pickups, GM has not yet agreed to this.
It is believed that a deal involving pickups will likely take longer to finalize than the commercial van agreement.
Further Partnership Possibilities
Beyond vans and trucks, the automakers are also exploring Hyundai supplying compact SUVs to GM. These could be added to GM’s product line-up in Brazil. This reflects GM’s strategy to leverage partnerships to offset challenges in the Chinese market and expand in South American markets.
In January, Hyundai confirmed it was in talks to supply electric commercial vehicles to GM. This followed a preliminary agreement exploring how the automakers could work together on vehicles, supply chains, and green energy innovations.
General Motors declined to speak specifically about the negotiations, but offered a statement: “Both companies continue to explore potential areas of collaboration.”
Hyundai also released a statement noting that while ongoing talks are taking place, nothing has been finalized regarding potential deals.
Addressing Competitive and Geopolitical Pressures
Both GM and Hyundai are facing competitive pressures. Chinese EV manufacturers have rapidly disrupted the market with high-tech, low-cost models. GM is among the automakers that is seeing sales declines in China.
Geopolitical tensions, increased by tariffs from the U.S., are also contributing to the uncertainty and affecting the talks. These considerations could restrict the ability of these companies to use imported components and push them to increase U.S. manufacturing.
A commercial van arrangement could help GM compete more effectively with market leaders like Ford and Ram by avoiding the large investment required for in-house model development, according to Sam Fiorani, vice president at Auto Forecast Solutions.
Hyundai is looking at sharing its compact electric commercial vans based on its ST1. Additionally, Hyundai is developing a larger electric commercial van, designed as a rival to the Mercedes-Benz Sprinter.
The smaller van could be assembled in Ulsan, South Korea, with potential supplies to GM starting in mid-2027, according to documents. A larger van, similar in size to Hyundai’s Solati is expected in 2028.
A potential new North American commercial van factory under consideration could target production of 60,000 units by 2030 and over 100,000 by 2032.
With its U.S. sales increasing, and Chinese sales decreasing Hyundai is looking to partner with GM to gain entrance into the US commercial vehicle and truck market.
As Hyundai attempts to convince GM to implement a pickup sharing deal Hyundai is looking at providing GM with the small SUV called Creta to update the model lineup in Brazil.
