General Motors $GM ( ▲ 1.1% ) and Hyundai announced Thursday that they are partnering to co-develop vehicles—as China ramps up its global expansion.
The details: The Detroit automaker and South Korean-based company will jointly develop four vehicles for Central and South America and one for North America that will go on sale in 2028.
Jointly developed vehicles for Central and South America will include a compact SUV, sedan, and two pickups—with GM leading development of the truck platform.
The North American vehicle will be an all-electric van—with Hyundai leading the development of the EV and all five vehicles featuring respective brand elements.
The two companies expect annual sales of the five vehicles to exceed 800,000 units a year once production is fully scaled—with the joint development project marking the first time Hyundai has entered a partnership with another major automaker.
What they’re saying: “By partnering together, GM and Hyundai will bring more choice to our customers faster, and at lower cost. These first co-developed vehicles clearly demonstrate how GM and Hyundai will leverage our complementary strengths and combined scale,” said Shilpan Amin, Senior VP at GM.
Why it matters: The Hyundai-GM partnership enables both automakers to pool development resources, leverage each other’s strengths, and manage production costs to meet the demand for more affordable vehicles.
Between the lines: News of GM and Hyundai’s joint vehicle development plans comes as both automakers look for ways to offset the cost of tariffs and compete with Chinese automakers expanding their global footprint with low-cost vehicles.
The jointly developed electric van will be manufactured in the U.S. to meet a North American demand for electric and hybrid models, which have helped charge up Hyundai’s sales.
Central and South America have become a highly targeted market for low-cost Chinese vehicles.
“Hyundai’s strategic collaboration with GM will help us continue to deliver value and choice to our customers across multiple vehicle segments and markets,” stated José Muñoz, President and CEO of Hyundai.
Bottom line: The GM-Hyundai partnership boosts competitiveness by combining resources to develop affordable and electric vehicles for the Americas, helping both companies counter growing pressure from Chinese automakers. For stakeholders, it means greater cost efficiency, faster market entry, and strong sales potential in key growth regions.
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