Hyundai, GM Partner to Launch Five Models by 2028, Countering Chinese Rivals

Hyundai Motor Company and General Motors (GM) have announced a significant deepening of their strategic partnership, with plans to jointly develop five vehicle models. This collaboration is aimed at countering the intensifying competition from Chinese automakers. The five models, which include an electric van for the North American market, are expected to launch by 2028. Four of these models are specifically designed for the Central and South American markets, encompassing a compact SUV, a sedan, and two pick-up trucks. These vehicles will feature flexible powertrain configurations, allowing for the choice between internal combustion engines and hybrid systems.

The division of labor in this partnership sees GM leading the development of the mid-size truck platform, while Hyundai will focus on compact vehicles and the electric van. Both companies anticipate that, once production capacity is fully utilized, the annual sales of these five models could exceed 800,000 units. This strategic cooperation was formalized in September 2024, driven by the rise of low-cost competitors from China and their substantial investments in both conventional and electric vehicles. This collaboration marks Hyundai's first major joint venture with another automaker, paving the way for resource integration and enhanced operational efficiency in global markets.

For GM, the introduction of these new models signifies a renewed push into the global market after years of scaling back its international operations. Under the leadership of CEO Mary Barra, GM has exited markets in Australia, Europe, India, and Southeast Asia, and restructured its struggling business in China. With Hyundai's technological support, GM aims to develop smaller, more suitable vehicle models for consumers who prefer alternatives to the large pick-up trucks popular in the United States. This move is part of a broader strategy to regain market share and compete more effectively against Chinese automakers, who have been making significant inroads in global markets with their cost-effective and technologically advanced vehicles.