Hyundai and GM hold wide-ranging discussions

21/3/2025 6:19

Hyundai Motor

and General Motors are close to finalizing a deal for

Hyundai to share two electric commercial van models with the

U.S. auto giant, according to a source familiar with the talks

and Hyundai documents reviewed by Reuters.



In return, GM might provide Hyundai with pickup trucks to

sell under its own brand in North America, the source said.



Such arrangements could kick off a broader partnership as

the companies, two of the world's largest automakers, hold

wide-ranging discussions, the source said. The documents

reviewed by Reuters show Hyundai is considering deals with GM

that include joint purchasing or development involving computing

chips, next-generation batteries and battery materials.



Like many global automakers, GM and Hyundai are facing

rising competition from Chinese EV makers and the threat of a

global



trade war



, prompting them to look to share products to slash

spending.



Hyundai would produce vans to be sold under both its own and

GM brands, initially importing them from South Korea, according

to the documents and the person familiar with the talks. But

Hyundai is considering manufacturing the vans in North America

by 2028. The person said Hyundai is exploring building a new

plant, adding production to an existing facility or contracting

out the manufacturing.



The talks on pickups focus on GM sharing its midsized

trucks, branded as the Chevrolet Colorado and GMC Canyon in the

United States, one of the sources said. Hyundai also wants to

sell a version of GM's popular full-sized pickups, the source

said, but GM hasn't put that option on the table.



Any pickup-sharing deal likely will take longer to finalize

than the commercial van arrangement, the person said.



The automakers are also discussing the possibility of

Hyundai providing GM with compact SUVs it could add to its

product line-up in Brazil, the source said.



Hyundai said in January that it is in talks to supply

electric commercial vehicles to GM as part of a preliminary

agreement to explore how the automakers could cooperate on

vehicles, supply chains and clean-energy technologies to cut

costs and speed development.



Details of the partnership talks, including a potential

pickup sharing deal, are reported here for the first time.



General Motors declined to comment on specifics of the

negotiations but said in a statement: "Both companies continue

to explore potential areas of collaboration."



Hyundai said in a statement that nothing has been finalized

in ongoing talks but that the automakers are exploring deals

"across key strategic areas."







COMPETITIVE THREATS, GEOPOLITICAL TENSIONS



Chinese EV producers have upended the auto industry with

high-tech, low-cost models and GM is among many legacy

automakers losing sales in China, the world's largest auto

market, and aiming to boost revenues elsewhere. Hyundai's

business in China is minimal but it faces the threat of Chinese

exports globally.



Both automakers also face geopolitical tensions heightened

by tariffs being levied or threatened by U.S. President Donald

Trump, which could curtail their ability to use imported

components and push them to set up more U.S. manufacturing.



Tariff threats are also adding uncertainty to the GM-Hyundai

partnership talks, according to two sources familiar with the

matter.



A commercial van deal could help GM better compete with the

Ford Transit and Ram ProMaster without the major

investment of developing its own model, said Sam Fiorani, vice

president at research firm Auto Forecast Solutions.



GM needs new commercial vans, he said, because it is

expected to phase out production of its decades-old Chevrolet

Express and GMC Savana vans soon.



Hyundai is considering sharing its compact electric

commercial vans based on its ST1 electric commercial vehicle. It

would also give GM a larger electric commercial van that Hyundai

is developing to challenge the Mercedes-Benz Sprinter, according

to the documents and one of the sources. The two automakers

might share sales and service networks for the vans, the Hyundai

documents show.



The smaller van would be initially assembled at Hyundai's

factory in the South Korean city of Ulsan and potentially

supplied to GM starting in mid-2027, the documents say. The

model will be followed in 2028 by the larger van, similar in

size to Hyundai's Solati.



The new North American commercial van factory under

consideration would target production of 60,000 by 2030 and more

than 100,000 in 2032.







SMALL SUVS, PICKUP TRUCKS



Hyundai is increasing U.S. sales while its China sales

decline and emerged - along with GM - as a challenger to Tesla

in the EV market. But unlike GM, Hyundai has little

presence in the lucrative U.S. commercial vehicle and truck

market.



Hyundai can use the GM partnership to gain a foothold in

those segments, where rivals like Toyota and Nissan

struggle to compete with the Detroit Three automakers,

said Fiorani, of Auto Forecast Solutions.



As Hyundai aims to convince GM to share its hot-selling

pickups, it is considering giving GM a small sport utility

vehicle called the Creta to refresh its model lineup in Brazil,

one of the sources said.



A third source said GM hopes to partially make up for its

struggling business in China through Hyundai partnerships. GM,

the person said, could use Hyundai's small and mid-sized vehicle

platforms to potentially expand in South American markets.