Hyundai and GM Explore Strategic Partnership, Including Electric Vans and Pickup Trucks
Hyundai Motor Co. and General Motors Co. are reportedly close to finalizing a deal for Hyundai to share two electric commercial van models with GM, according to a source familiar with the talks and Hyundai documents reviewed by Reuters. As part of the agreement, GM may provide Hyundai with pickup trucks to sell under its own brand in North America. The source indicated these arrangements could be the beginning of a broader partnership, with discussions spanning various strategic areas.
Hyundai says that nothing has been finalized in continuing talks but that the automakers are exploring deals ‘cross key strategic areas.’
The documents reviewed by Reuters reveal Hyundai is considering additional deals with GM. These include joint purchasing options and collaborative development efforts concerning computing chips, advanced batteries, and battery materials. Both companies, like many global automakers, face increasing competition from Chinese EV makers and the potential impact of a global trade war. This is pushing them towards product sharing to reduce costs.
Initially, Hyundai would manufacture the vans, which would be sold under both the Hyundai and GM brands. They would be imported from South Korea, according to the documents and the source. However, Hyundai is also considering manufacturing the vans in North America by 2028. The source indicated Hyundai is assessing options for a new plant or expanding existing facilities, including outsourcing. The pickup truck discussion centers around GM sharing its mid-sized trucks, such as the Chevrolet Colorado and GMC Canyon, the source stated. Hyundai has also expressed interest in selling a version of GM’s full-sized pickups, but that option isn’t on the table at this time.
Any deal concerning pickup trucks is expected to take longer to finalize than the commercial van arrangement, said the source. Furthermore, the automakers are evaluating the possibility of Hyundai supplying compact SUVs to GM for their product lineup in Brazil. In January, Hyundai announced discussions with GM regarding electric commercial vehicles as part of a preliminary agreement to explore cooperation in vehicles, supply chains, and clean-energy technologies for the purpose of cost reduction and accelerating development. This is the first report detailing these partnership discussions, including the potential pickup sharing arrangement.
General Motors declined to comment on the deal specifics but mentioned in a statement that both companies are actively exploring areas for potential collaboration. Hyundai also issued a statement, saying no final decisions had been made but that the automakers are considering deals “across key strategic areas.” The rise of high-tech, low-cost models from Chinese EV producers has significantly impacted the automotive industry. GM, among other legacy automakers, is experiencing declining sales in China, the world’s largest auto market, and is focused on increasing revenues elsewhere. Though Hyundai’s business in China is minimal, it still faces the threat of Chinese exports globally.
Both automakers are dealing with heightened geopolitical tensions caused by tariffs imposed or threatened by the U.S. government, potentially limiting their ability to use imported components. This pushes them toward increasing manufacturing in the U.S. According to two sources familiar with the situation, tariff threats also contribute to the uncertainty surrounding the GM-Hyundai partnership talks. Sam Fiorani, vice president at Auto Forecast Solutions, suggested that a commercial van deal could help GM compete with the Ford Transit and Ram ProMaster without the significant investment required for developing its own model.
GM’s need for new commercial vans stems from the scheduled phasing out of its older Chevrolet Express and GMC Savana vans. Hyundai is pondering sharing its compact electric commercial vans based on its ST1 electric commercial vehicle. In addition, Hyundai plans to offer GM a larger electric commercial van it is currently developing to challenge the Mercedes-Benz Sprinter, as per the documents and one of the sources. The Hyundai documents indicated that the two automakers might share sales and service networks for these vans. The smaller van would be initially assembled at Hyundai’s factory in the South Korean city of Ulsan, with potential supply to GM starting in mid-2027. The larger van, similar in size to Hyundai’s Solati, is slated for release in 2028.
The envisioned new North American commercial van factory is targeting production of 60,000 units by 2030 and an increase to over 100,000 by 2032. While Hyundai’s sales in the U.S. are growing, its China sales are decreasing. Alongside GM, Hyundai has emerged as a competitor to Tesla in the EV market. However, unlike GM, Hyundai has a limited presence in the lucrative U.S. commercial vehicle and truck market. According to Fiorani, the partnership with GM could enable Hyundai to gain a foothold in those segments. This is where rivals such as Toyota and Nissan are finding it difficult to compete with the Detroit Three automakers.
As Hyundai attempts to convince GM to share its popular pickup trucks, it is also considering offering GM a small sport utility vehicle known as the Creta to rejuvenate its model lineup in Brazil, the sources suggested. A third source suggested that GM is looking to counter its struggling business in China through partnerships with Hyundai. GM, according to the source, could utilize Hyundai’s small and mid-sized vehicle platforms to expand in South American markets.
