Hyundai and GM plan JV for five new models including electric van

SEOUL: Hyundai Motor Co and General Motors Co plan to jointly develop five vehicles that will hit the market in 2028, including an electric van for North America, as the two automakers deepen strategic ties amid intensifying competition from China.

The pair will develop four vehicles for the central and South American market, including a compact SUV, sedan and two pick-ups, all with the flexibility to use either an internal combustion engine or a hybrid system, they said in a statement Thursday.

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

Sales of the five vehicles is forecast to exceed 800,000 units a year once production is fully scaled, they said.

The Korean and US carmakers sealed a partnership in September 2024 to jointly develop vehicles, engines and clean technologies such as electric and hydrogen powertrains, in the face of increasing competition from low-cost Chinese rivals and surging investments for their petrol-fueled and electric vehicles.

The partnership is Hyundai's first with another automaker for a large-scale project, paving the way for both sides to pool resources for more efficient capital spending and manufacturing operations in markets around the world.

For GM, the new vehicles will mark a renewed push for growth in global markets after years of shrinking its international business.

Under Chief Executive Officer Mary Barra, GM has closed operations in Australia, Europe, India, and Southeast Asia, while also restructuring its struggling China business.

With Hyundai's help, the Detroit company hopes to have smaller vehicles designed for consumers who don't drive the large trucks that are popular in the US.