World.Alpha-News.org ➤ The news of the world is here
Hyundai and GM Initiate Talks on Product-Sharing Agreements for Vans and Pickups

Hyundai Motor and General Motors are nearing an agreement for Hyundai to share two electric commercial van models with GM, according to a source familiar with the discussions and Hyundai documents. In exchange, GM may provide Hyundai with pickup trucks to sell under its own brand in North America.

This collaboration could pave the way for a broader partnership, as the two major automakers engage in wide-ranging talks. The documents reveal that Hyundai is considering various deals with GM, including joint purchasing and development of computing chips, next-generation batteries, and battery materials.

As with many automakers, both GM and Hyundai are facing increasing competition from Chinese EV manufacturers and the challenges of a global market, prompting them to seek product-sharing arrangements to reduce costs.

Hyundai plans to produce vans for both its brand and GM's, initially importing them from South Korea, but is exploring options for manufacturing these vans in North America by 2028, potentially through a new plant, an expansion of an existing facility, or contract manufacturing.

Discussions regarding pickups focus on GM sharing its midsized trucks, the Chevrolet Colorado and GMC Canyon. Hyundai is also interested in a version of GM's full-sized pickups, although that option has not yet been proposed.

Any pickup-sharing agreement is expected to take more time to finalize than the commercial van deal. The companies are also considering the possibility of Hyundai supplying GM with compact SUVs to enhance GM's lineup in Brazil.

Hyundai confirmed in January that it is in talks with GM to explore cooperative opportunities related to vehicles, supply chains, and clean-energy technologies to reduce costs and accelerate development.

Details of these partnership talks have not been reported until now. GM declined to comment on specifics but indicated that both companies are exploring potential collaboration areas. Hyundai stated that while discussions are ongoing, nothing has been finalized, and that the automakers are exploring strategic deals.

Chinese EV manufacturers have disrupted the auto industry with innovative, cost-effective models, impacting GM's sales, particularly in China, the world's largest auto market, while prompting Hyundai to address the global threat of Chinese exports.

Both automakers are also navigating geopolitical challenges intensified by tariffs imposed or threatened by the U.S., which could limit their ability to use imported components and encourage more domestic manufacturing.

Tariff concerns add uncertainty to the GM-Hyundai talks. A deal for commercial vans could help GM better compete against the Ford Transit and Ram ProMaster without the significant investment involved in developing its own model, as noted by an expert from Auto Forecast Solutions. GM is anticipated to phase out its long-standing Chevrolet Express and GMC Savana vans.

Hyundai is contemplating sharing its compact electric commercial vans based on its ST1 model, which would also allow GM access to a larger electric commercial van currently under development to rival the Mercedes-Benz Sprinter. The two companies may also share sales and service networks for these vans.

The smaller van is expected to be initially assembled at Hyundai's Ulsan factory in South Korea, with plans to supply GM starting in mid-2027, followed by the larger model in 2028, which will be similar in size to Hyundai's Solati.

A new North American commercial van facility under consideration could aim for production of 60,000 units by 2030 and over 100,000 by 2032.

As Hyundai increases its U.S. sales while experiencing declines in China, it emerges as a competitor to Tesla in the EV market. Unlike GM, however, Hyundai has minimal presence in the lucrative U.S. commercial vehicle and truck market.

The partnership with GM could enable Hyundai to establish a foothold in these segments, where competitors like Toyota and Nissan face challenges against the Detroit Three automakers. In seeking to persuade GM to share its successful pickups, Hyundai is contemplating offering GM a small SUV called the Creta to refresh its model lineup in Brazil.

Additionally, there's potential for GM to leverage partnerships with Hyundai to compensate for market share losses, using Hyundai's vehicle platforms to expand in South American markets.