General Motors and Hyundai Motor Company Announce Plans for First Five Co-developed Vehicles

Rhea-AI Summary

Hyundai Motor Company (OTC:HYMTF) and General Motors (NYSE:GM) have announced plans to co-develop five vehicles, marking a significant milestone in their strategic partnership. The collaboration includes four vehicles for Central and South America (compact SUV, car, and two pick-ups) and an electric commercial van for North America.

The companies expect combined annual sales of over 800,000 units once production reaches full scale. GM will lead mid-size truck platform development, while Hyundai will handle the compact vehicle and electric van development. The vehicles will launch in 2028, with the electric van to be manufactured in the U.S. The partnership also encompasses joint sourcing initiatives and exploration of low-carbon emissions steel collaboration.

Positive

• Expected annual sales of over 800,000 co-developed vehicles at full scale
• Strategic partnership expanding market presence in North and South America
• Cost efficiency through shared platforms and joint sourcing initiatives
• Diversification into multiple vehicle segments including EVs
• U.S.-based manufacturing of electric commercial van

Negative

• Long development timeline with launches not expected until 2028
• Significant investment required for co-development and manufacturing
• Potential integration challenges between two major automotive manufacturers

Insights

Automotive Industry Analyst

GM-Hyundai partnership targets 800,000 annual vehicle sales through platform sharing while maintaining brand identities, launching in 2028.

The strategic collaboration between General Motors and Hyundai Motor Company represents a significant shift in how traditional automakers are approaching the challenges of today's automotive landscape. This partnership targets five co-developed vehicles - four for Central and South America (compact SUV, car, and pickup trucks) plus an electric commercial van for North America. The projected 800,000 annual vehicle sales once fully scaled indicates substantial market impact.

The division of development responsibilities is particularly strategic: GM will lead mid-size truck platform development (leveraging their truck expertise) while Hyundai leads compact vehicle and electric van development (areas where they've shown technological strength). This complementary approach allows both companies to focus on their core competencies while sharing development costs.

What's most notable is how this partnership addresses several critical industry challenges simultaneously:

• Platform consolidation to achieve economies of scale
• Shared development costs for multiple propulsion systems (ICE, hybrid, and electric)
• Market-specific product development for regional needs
• Maintaining brand differentiation through unique interior/exterior designs

The 2028 launch timeline gives both companies sufficient runway to develop truly integrated products rather than badge-engineered variants. The additional collaboration on sourcing, logistics, and potentially propulsion systems represents a deeper partnership than most industry alliances. This approach could yield 15-20% cost savings on development while accelerating time-to-market in competitive segments.

The inclusion of sustainable manufacturing initiatives, particularly low-carbon emissions steel, demonstrates how these traditional manufacturers are incorporating environmental considerations into industrial partnerships beyond just the vehicles themselves.

• Co-development work underway for vehicles to launch in 2028
• Jointly developed next-generation commercial van to be introduced in North America

DETROIT and SEOUL, Aug. 6, 2025 /PRNewswire/ -- Hyundai Motor Company and General Motors announced plans for their first five co-developed vehicles, marking a significant milestone in their previously announced strategic collaboration.

The two companies will co-develop four vehicles for the Central and South American market, including a compact SUV, car and pick-up, as well as a mid-size pick-up, all with the flexibility to use either internal combustion or hybrid propulsion systems. Hyundai and GM also will co-develop an electric commercial van for North America.

Hyundai and GM expect sales of the co-developed vehicles to be more than 800,000 vehicles a year once production is fully scaled.

GM will lead the development of the mid-size truck platform, while Hyundai will lead on the compact vehicle and electric van.

The two companies will share common platforms and develop unique interiors and exteriors consistent with their respective brands.

Design and engineering work is underway on the new vehicles for the Central and South American markets, which will launch in 2028. The electric commercial van will be manufactured in the U.S. as early as 2028.

"Hyundai's strategic collaboration with GM will help us continue to deliver value and choice to our customers across multiple vehicle segments and markets," said José Muñoz, President and CEO of Hyundai Motor Company. "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."

Shilpan Amin, GM senior VP and global chief procurement and supply chain officer, said the vehicles announced today were targeted at the largest segments in the Central and South American markets, as well as the commercial segment in North America.

"By partnering together, GM and Hyundai will bring more choice to our customers faster, and at lower cost," Amin said. "These first co-developed vehicles clearly demonstrate how GM and Hyundai will leverage our complementary strengths and combined scale."

The two companies also plan joint sourcing initiatives in North and South America for materials, transport, and logistics. Further areas for potential joint operations include raw materials, components, and complex systems.

Hyundai Motor and GM also agreed to explore collaboration on low-carbon emissions steel as part of their commitment to sustainable manufacturing.

Following the signing of a framework agreement in September 2024, the companies continue to assess additional joint vehicle development programs for global markets, as well as collaboration opportunities across propulsion systems, including internal combustion engines, hybrid, battery electric, and hydrogen fuel cell technologies.

Cautionary Note on Forward-Looking Statements: This press release and related comments by management may include "forward-looking statements" within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements represent our current judgment about possible future events and are often identified by words such as "anticipate," "appears," "approximately," "believe," "continue," "could," "designed," "effect," "estimate," "evaluate," "expect," "forecast," "goal," "initiative," "intend," "may," "objective," "outlook," "plan," "potential," "priorities," "project," "pursue," "seek," "should," "target," "when," "will," "would," or the negative of any of those words or similar expressions. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results, and our actual results may differ materially due to a variety of factors, many of which are described in our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission. We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statements, except where we are expressly required to do so by law.

General Motors (NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is GM's battery platform, which will power everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com.

About Hyundai Motor Company
Established in 1967, Hyundai Motor Company is present in over 200 countries with more than 120,000 employees dedicated to tackling real-world mobility challenges around the globe. Based on the brand vision 'Progress for Humanity,' Hyundai Motor is accelerating its transformation into a Smart Mobility Solution Provider. The company invests in advanced technologies such as robotics and Advanced Air Mobility (AAM) to bring about revolutionary mobility solutions while pursuing open innovation to introduce future mobility services. In pursuit of a sustainable future for the world, Hyundai will continue its efforts to introduce zero-emission vehicles with industry-leading hydrogen fuel cell and EV technologies.

More information about Hyundai Motor and its products can be found at: https://www.hyundai.com/worldwide/en/ or Newsroom: Media Hub by Hyundai

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SOURCE Hyundai Motor Company

FAQ

What vehicles are Hyundai (HYMTF) and GM co-developing in their new partnership?

The companies are co-developing five vehicles: four for Central and South America (compact SUV, car, and two pick-ups) and an electric commercial van for North America. All vehicles are expected to launch in 2028.

How many vehicles does Hyundai-GM partnership expect to sell annually?

The partnership expects to sell more than 800,000 vehicles annually once production reaches full scale.

Where will the Hyundai-GM electric commercial van be manufactured?

The electric commercial van will be manufactured in the United States and is expected to launch as early as 2028.

Which company will lead the development of different vehicles in the Hyundai-GM partnership?

GM will lead the development of the mid-size truck platform, while Hyundai will lead the development of the compact vehicle and electric van.

What additional collaboration areas are Hyundai and GM exploring?

The companies are exploring collaboration in propulsion systems (including ICE, hybrid, EV, and hydrogen fuel cell), joint sourcing for materials and logistics, and low-carbon emissions steel development.