GM Moves On From Honda, Partners With Hyundai To Develop New Cars

Between the two automakers, they expect the partnership to generate at least 800,000 vehicles a year once production is fully scaled. GM will lead the development of a midsize truck platform, while Hyundai will concentrate on a compact vehicle platform and an electric van.

The vehicles will be based on common platforms with unique interiors and exteriors to differentiate the two brands. But don't expect to see GM/Hyundai vehicles on US streets anytime soon. The collab will largely be focused on markets outside North America, with only one – an electric commercial van – slated for buyers in the States.

Faster And Cheaper

“By partnering together, GM and Hyundai will bring more choice to our customers faster, and at lower cost," said 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.”

At this time, the two conglomerates have plans for five vehicles – a compact and midsize truck, a compact SUV, a compact car, and the aforementioned van. Engineering has already started on vehicles aimed at Central and South American markets, and they should launch in 2028. The electric van for the US market has a planned launch for sometime in early 2028.

The plan appears to concentrate on reducing costs. With its partnership, GM and Hyundai plan to leverage buying power to source materials, transport, and logistics. As a secondary goal, the automakers plan to collaborate on low-carbon emissions steel as part of their commitments to sustainable manufacturing. Initially, the platforms being designed are to house regular internal combustion engines and hybrid systems, but joint development of battery electric and hydrogen fuel cell technologies are also on the table.

“Hyundai’s strategic collaboration with GM will help us continue to deliver value and choice to our customers across multiple vehicle segments and markets. 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.”
– José Muñoz, president and CEO of Hyundai Motor Company

A Sign Of Things To Come

The agreement between GM and Hyundai was made pre-tariffs, so this isn't a reaction to the current political climate. It's a long-term plan that likely benefits the two companies in different ways. Hyundai is working to catch up with Volkswagen and Toyota as a dominant force in the market, and lowering costs and scaling up production will be key to competing. Meanwhile, GM was already struggling with declining sales before the tariffs hit, and a partnership could be a way to regain its foothold in its global markets.

For Hyundai, it's clearly also a global decision, but the electric van market in the US is a promising segment to explore. For small businesses operating locally, electric vans make all kinds of sense. Ford is currently raking in the cash in this segment with its e-Transit, where there is surprisingly little competition. On a national scale, these vans can be a key component in the final stint of the delivery chain.

If the initial wave of vehicles goes well and goals are achieved, expect more joint vehicle development programs. GM has tried a Korean partnership before and failed, but Hyundai is a very different proposition than Daewoo. We've also seen smaller but successful collaborations between brands before, particularly Toyota working with Subaru and BMW. And of course, there was GM's recent collaboration with Honda.

If this becomes a successful venture, don't be surprised to see more such deals being made throughout the auto industry.