Hyundai Motor Co. and General Motors Co. outlined plans to jointly develop five vehicles by 2028, building on their September partnership framework as both automakers face mounting pressure from Chinese competitors in key markets.
The companies will co-develop four models for Central and South American markets – including compact and mid-size pickups, an SUV, and a passenger car – all supporting internal combustion and hybrid powertrains. Additionally, they plan an electric commercial van for North America.
GM will lead development of the mid-size pickup platform while Hyundai takes charge of compact vehicles and the electric van. Both companies expect combined annual sales exceeding 800,000 units once production reaches full scale.
The partnership positions GM to access hybrid technology it currently lacks, while giving Hyundai entry into North American commercial vans and mid-size pickups, according to Hanwha Investment & Securities analyst Kim Sung-rae.
However, some analysts questioned the strategy’s effectiveness. “Even if they sell those new models in South America, it’s hard to beat Chinese competitors which already are leading in the electric-vehicle market with low prices,” said An Hyung-jin, chief investment officer at Seoul-based Billionfold Asset Management.
The announcement follows GM’s scrapped $5 billion Honda partnership for affordable electric vehicles in 2023, highlighting the Detroit automaker’s search for viable collaboration amid rising development costs and tariff pressures.
