There has been talk in the past of a partnership between General Motors (GM) and Hyundai. It's now understood the two auto giants are about to finalize an agreement, according to Reuters, which quotes a source well-versed in the talks.
The agreement would see Hyundai share two of its electric commercial vans with GM, which in turn would provide Hyundai with pickup trucks it could sell under its own banner in North America.
The partnership could lead to other exchanges between the two giants, according to the source. There’s talk of joint development, purchases of computer chips, battery development and more.
This kind of sharing is not new in the industry. Due to the current context, where Chinese competition is becoming increasingly important, and where there is uncertainty in North America with threats of tariffs from the Trump administration, manufacturers are trying by all means to reduce their expenses in order to be more competitive.
The models to be shared
Under the plan, Hyundai would produce electric vans, imported from South Korea, that would be sold under its banner and that of one of GM’s. As for GM’s pickups, Hyundai is considering assembling them in North America as of 2028. This could be in a new North American plant or an existing facility. Obviously, the timeline on all of this is relatively long term still – much could change.
Discussions regarding the pickup trucks have focused on GM's mid-size models, the Chevrolet Colorado and GMC Canyon. Hyundai is reportedly also interested in selling a full-size model, but that is not on the offer table as far as GM is concerned.
Other vehicles
The manufacturers are also discussing the possibility of Hyundai providing GM with compact SUVs that it could add to its product line in Brazil, according to the source.
GM isn’t yet saying much officially yet regarding the partnership, but the company did state that "both companies continue to explore potential areas of collaboration." Hyundai issued a similar statement.
Obvious advantages for both companies
It’s easy to see how such a partnership could benefit each manufacturer. Two new electric vans in its roster would allow GM to better compete with Ford and Ram, which already offer such formats, all without having to invest massively.
Unsurprisingly, the two vans being considered are of different sizes. The smaller one would be assembled by Hyundai at its Ulsan plant from the summer of 2027. In 2028, a larger van would be added to the range. GM, by the way, still offers the Chevrolet Express and GMC Savana, but their days are numbered.
For Hyundai, the advantage is also obvious. A mid-size pickup would allow it to offer an alternative to buyers of the Nissan Frontier, Toyota Tacoma and American models.
Other sharing arrangements are part of the discussions between the two manufacturers.