General Motors and Hyundai Motor will co-develop five vehicles in the Americas as part of a partnership that began last September.
The automakers will make four automobiles for the South and Central American markets, including a compact SUV, a car and midsize pickup truck. They will also develop an electric commercial van for North America.
The vehicles for Latin American markets are set to launch in 2028, and the electric van will be manufactured in the U.S. as early as 2028, the companies said in a joint statement.
GM and Hyundai expect to sell more than 800,000 of the new vehicles each year once production is fully scaled, they say in a news release issued after the U.S. stock markets closed on Wednesday.
“Hyundai’s strategic collaboration with GM will help us continue to deliver value and choice to our customers across multiple vehicle segments and markets,” José Muñoz, president and CEO of Hyundai Motor Company, says in the release. “Our combined scale in North and South America helps us to more efficiently provide our customers more of what they want – beautifully designed, high-quality, safety-focused vehicles with technology they appreciate.”
“By partnering together, GM and Hyundai will bring more choice to our customers faster, and at lower cost,” says Shilpan Amin, GM senior vice president and global chief procurement and supply chain officer. “These first co-developed vehicles clearly demonstrate how GM and Hyundai will leverage our complementary strengths and combined scale.”
GM will lead the development of the midsize truck, while Hyundai will oversee the compact car and electric van.
The partnership between the two companies involves GM and Hyundai developing new-energy projects and investments together ranging from new vehicles, joint production, powertrain and platform production, as well as emerging battery- and hydrogen-power mobility and distribution, investments in raw materials and more.
The electric commercial van will be a rare foray for Hyundai into the North American commercial-vehicles market. While the Korean automaker is a major commercial player in many global markets, in North America the Detroit Three are dominant, although Hyundai has its sights set on trying to break through with alternative-powertrain vehicles.
Among the Detroit Three, Ford has the most market share in the U.S. commercial sector and both it and GM currently retail electric commercial vans, as does electric startup Rivian. But the segment hasn’t been bountiful for any player, in particular for GM, whose BrightDrop van has been beleaguered by high supply and low demand, causing the automaker to take lengthy pauses in its production, as well as go from two shifts down to one at GM’s Ingersoll, ON, Canada, plant assembling the van. GM also last year began allowing its Chevrolet brand dealers to sell the BrightDrop to expand its reach to a wider audience and improve service access for owners needing repairs or tools.
