Hyundai, GM to Jointly Develop Electric Van for North America
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Hyundai Motor Co. and General Motors Co. plan to jointly develop five vehicles that will hit the market in 2028, including an electric van for North America, as the two automakers deepen strategic ties amid intensifying competition from China.
The pair will develop four vehicles for the central and South American market, including a compact SUV, sedan and two pickups, all with the flexibility to use either an internal combustion engine or a hybrid system, they said in a statement Aug. 7.
GM will steer the development of the midsize truck platform, while Hyundai will lead the compact vehicle and electric van. Sales of the five vehicles is forecast to exceed 800,000 units a year once production is fully scaled, they said.
Hyundai shares rose as 2.1% in early trading in Seoul, before erasing some of the gains.
The Korean and U.S. carmakers sealed a partnership in September 2024 to jointly develop vehicles, engines and clean technologies such as electric and hydrogen powertrains, in the face of increasing competition from low-cost Chinese rivals and surging investments for their gas-fueled and electric vehicles.
— Hyundai Motor Group (@HMGnewsroom)
It’s Hyundai’s first major partnership with another automaker, paving the way for both sides to pool resources for more efficient capital spending and manufacturing operations, while facilitating sourcing and procurement of raw materials and parts.
South Korea’s biggest carmaker has been seeking to diversify its product lineup and boost profitability to cushion the impact from U.S. tariffs and slowing global demand. Hyundai and its affiliate Kia Corp. face a 15% levy under President Donald Trump’s tariff regime — which could amount to as much as $5 billion in additional costs this year, according to Bloomberg Intelligence.
For GM, the new vehicles will mark a renewed push for growth in global markets after years of shrinking its international business. Under CEO Mary Barra, GM has closed operations in Australia, Europe, India, and Southeast Asia, while also restructuring its struggling China business. With Hyundai’s help, the Detroit company hopes to have smaller vehicles designed for consumers who don’t drive the large trucks that are popular in the U.S.
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The two companies’ plan for an electric van, which will be manufactured in the U.S. starting as early as 2028, also coincides with robust demand for electric and hybrid models in North America which contributed to Hyundai’s record revenue in the second quarter.
In March, Hyundai unveiled a plan to invest a record $21 billion in the U.S. through 2028, aiming to ramp up production and generate about 14,000 direct jobs. The project includes $9 billion to boost factory output to about 1.2 million vehicles annually.
