GM and Hyundai to Jointly Develop Five Vehicles

General Motors and Hyundai Motor Company formalized plans to jointly develop their first five vehicles, following the memorandum of understanding signed between the two companies in September last year.

The companies will work together to develop four vehicles for the Central and South American markets, including a compact SUV, a compact car, and two pickups: one compact and one mid-size.

These vehicles will feature flexible architecture, allowing them to run on either an internal combustion engine or a hybrid system. In addition, GM and Hyundai will jointly develop an electric commercial van for the North American market.

GM and Hyundai estimate that, once production is fully scaled up, sales of these vehicles will exceed 800,000 units per year.

However, both companies omitted where the production of the vehicles for Central and South America will take place. The only thing confirmed is that the van will be produced in the United States.

GM will lead the development of the platform for the midsize pickup truck, while Hyundai will be responsible for the three compact vehicles and the electric van.

Although they will share common platforms, the interior and exterior design will be unique to each brand, reflecting their own identity.

Design and engineering work will begin immediately for vehicles destined for Central and South America, with a launch planned for 2028, the same year that the electric commercial van will also hit the market.

Shilpan Amin, GM's Senior Vice President and Global Head of Purchasing and Supply Chain, highlighted that the announced vehicles are focused on the most important segments of the Central and South American markets, as well as the commercial segment in North America.

“Thanks to this alliance, GM and Hyundai will offer more options to customers, faster and at a lower cost,” said Amin.

“These first jointly developed vehicles clearly demonstrate how we will leverage our complementary strengths and the combined scale of both companies,” he explained.

“The strategic collaboration with GM will allow us to continue offering value and options to our customers in different segments and markets,” said José Muñoz, president and CEO of Hyundai Motor Company.

“Our combined scale in North and South America will allow us to respond more efficiently to customer demands with attractive, high-quality vehicles that focus on safety and relevant technology,” he added.

The companies also plan joint purchasing initiatives on the continent, covering materials, transportation, and logistics. Other areas with potential for collaboration include raw materials, components, and complex systems.

Hyundai and GM also agreed to explore partnerships for the use of low-carbon steel, reinforcing both companies' commitment to sustainable manufacturing practices.

Following the signing of the cooperation agreement in September 2024, the companies continue to evaluate new opportunities for the joint development of vehicles for global markets, as well as possible collaborations on powertrain systems, including combustion engines, hybrids, battery electric vehicles, and hydrogen fuel cells.