Hyundai Motor Company and General Motors are in the final stages of a strategic agreement for Hyundai to share two electric van models with GM while rebranding and selling GM’s pickup trucks in the North American market, Reuters reported on Friday.
Hyundai plans to produce vans for both its own brand and GM, initially importing them from South Korea and is exploring options to manufacture the vehicles in North America either by using its local plant, outsourcing production or constructing a new facility.
In exchange, GM is expected to share its midsized trucks, the Chevrolet Colorado and GMC Canyon, with Hyundai in the US market. Although Hyundai is also interested in selling GM’s full-sized pickups -- presumably, the Chevrolet Silverado and GMC Sierra – the American carmaker has excluded this option from the discussions, according to a source quoted by Reuters. As a result, the pickup arrangements are anticipated to require more time to finalize than the commercial van deal.
Hyundai and GM are also discussing whether Hyundai will supply compact SUVs for GM as fresh editions to its car lineup in Brazil, the source noted. Beyond vehicle-sharing, the automakers are mulling over joint purchasing or development of computing chips, next-generation batteries and battery materials.
“The two companies are continuing discussions, but nothing has been decided at this time,” said an official from Hyundai Motor Company’s Seoul headquarters.
Industry insiders here suggest that Hyundai could leverage GM’s well-established pickup lineups to expand its presence in the US, a major market for pickup trucks, while countering potential auto tariffs from the second Trump administration. GM seeks to market Hyundai’s electrified models, which are gaining traction in the country.
“Hyundai sells midsized pickup, the Santa Cruz, in the US. However, it looks to include large-sized pickups in its offerings, as they are much more popular in the market,” said Kim Pil-su, a car engineering professor at Daelim University. “It would be best for the automaker to successfully negotiate the full-sized fleet with GM.”
The strategic partnership between Hyundai Motor Group and GM -- the world’s third- and sixth-largest automakers by sales last year, respectively -- came out last year when Hyundai Motor Group Executive Chair Chung Euisun and GM CEO Mary Barra signed a memorandum of understanding to collaborate on key strategic areas in the global automotive industry.
hyejin2@heraldcorp.com
