Hyundai, GM Close to Unveiling Vehicle Sharing Plan
Hyundai Motor Co. and General Motors Co. are on the verge of announcing a vehicle-sharing agreement, approximately six months after they established a broad strategic alliance. The deal could reshape the automotive landscape, emphasizing the collaboration between these two industry leaders.
According to a recent Reuters report, the agreement will likely involve Hyundai Motor sharing two of its electric commercial van models with GM. In return, GM may permit Hyundai to sell its pickup trucks in North America under the Hyundai brand.
The companies had previously signaled their intent to solidify plans. During an earnings conference call in January, Hyundai Motor executives said they aimed to finalize joint projects with GM within the first quarter of this year. Industry observers widely anticipate a formal announcement to follow shortly.
The initial agreement, signed last September, allowed the companies to explore joint vehicle development, rebadging (selling each other’s models under their own brands), and collaborative sourcing of raw materials for electric vehicles. This partnership represents the first strategic alliance for the South Korean car giant with a global finished carmaker.
This collaboration is expected to provide a win-win for both companies. GM holds a strong position in the commercial vehicle, SUV, and pickup truck sectors. Meanwhile, Hyundai Motor excels in hybrid and EV technologies. Sharing vehicles allows them to offset each other’s weaknesses. Experts expect synergies, particularly cost savings, to arise from this strategic partnership.
The Reuters report also indicates that Hyundai is considering joint efforts with GM to purchase or develop computing chips, next-generation batteries, and battery materials. This collaborative approach is critical to address the challenges facing the automotive industry.
Reuters reported that Hyundai would produce the EV vans at a Korean plant to be sold under both its own and the GM brands. These vans would then be imported into the U.S.
While the specifics are still being worked out, the plan to share Hyundai’s electric vans seems closer to completion than the pickup truck sharing agreement.
GM is reportedly assessing the possibility of allowing Hyundai to rebrand its mid-size trucks, such as the Chevrolet Colorado and GMC Canyon, for sale in the United States under the Hyundai name. However, the pickup truck sharing agreement faces more challenges than the EV van sharing.
Ultimately, these collaborations will help the companies compete against rising rivals in the EV market. Chinese automakers are steadily increasing their presence in the global auto market, especially as electrification gains momentum.
As the two corporations plan to bolster their alliance across various fields, including future mobility technologies, experts anticipate that their combined influence will grow significantly. GM has 35 plants worldwide, which offers Hyundai Motor the opportunity to produce cars in countries where it doesn’t have a physical plant.
Under the MOU signed last year, both companies are expected to collaborate on hydrogen fuel-cell technology.
Hyundai Motor began developing hydrogen motor technology in 1998 and released its first hydrogen car model in 2013. The company has since expanded with the NEXO hydrogen-only model in 2018, with the XCIENT fuel-cell truck following in 2020.
