Hyundai joins forces with General Motors

General Motors and Hyundai Motor have announced plans to team up as both car giants seek out new ways to slash costs, enabling them to compete with Chinese rivals.

As part of the deal, GM and Hyundai will develop a total of five vehicles – four of which will include a compact SUV, a small car, a ute and a mid-size pick-up that should prove a rival for the Toyota Hilux.

All are initially set to be rolled out for Central and South America in 2028 and be powered by either combustion or hybrid powertrains. As part of the deal, GM and Hyundai said they expect to build as many as 800,000 vehicles in the first full year of production.

By sharing the cost of development across a range of Chevrolet, Kia and Hyundai brands, the new family of vehicles should be priced in line with the Chinese rivals.

However, analysts have questioned why the GM-Hyundai joint venture does not include plans for producing cut-price EVs.

The biggest beneficiary from the new arrangement is set to be Hyundai. It will learn from GM how to build a one-tonne ute, with the mid-size dual cab likely to be based on a GM-derived ladder-frame chassis. GM, meanwhile, is expected to leverage on its Korean partner’s hybrid expertise for small vehicles.

The second stage of the Hyundai-GM deal will then see both car giants work together to create a family of battery-powered delivery vans for the US market, with production also timed to start from early 2028.

The new partnership marks the first time Hyundai Motor has worked with another carmaker to develop cars, while GM has recently had to scrap a $5 billion plan to jointly develop affordable EVs with Honda.

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