Hyundai Motor, GM to co-develop 5 new vehicles by 2028

Hyundai Motor Group Executive Chair Euisun Chung, right, shakes hands with General Motors Chair and CEO Mary Barra after signing a memorandum of understanding for their strategic partnership in New York, Sept. 12, 2024. Courtesy of Hyundai Motor

Hyundai Motor and General Motors (GM) will launch five jointly developed vehicles by 2028 to make deeper inroads into both Latin and North America, the global carmakers said Thursday.

This is the first significant milestone after they announced a strategic memorandum of understanding (MOU) last year. Under the latest collaboration, they will produce four vehicles tailored for Central and South American markets — a compact SUV, passenger car, small pickup and mid-size pickup. All four models will offer powertrain flexibility, with options for both internal combustion and hybrid engines.

The two companies will jointly develop an electric commercial van designed for the North American market as well.

Once production ramps up fully, Hyundai and GM anticipate annual sales of the co-developed vehicles to exceed 800,000 units.

Design and engineering work is currently underway with plans to launch the vehicles in 2028.

Development responsibilities will be divided between the companies: GM will lead on the mid-size pickup platform, while Hyundai will spearhead development for the compact vehicles and electric van.

While the automakers will share underlying platforms, each vehicle will feature distinct interior and exterior designs aligned with the individual brand identities of Hyundai and GM, according to the carmakers.

“Hyundai’s strategic collaboration with GM will help us continue to deliver value and choice to our customers across multiple vehicle segments and markets,” Hyundai Motor CEO Jose Munoz said.

“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.”

Hyundai Motor's IONIQ 5 flagship electric SUV / Courtesy of Hyundai Motor

Shilpan Amin, senior vice president and global chief procurement and supply chain officer at GM, said the vehicles 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 latest announcement came shortly after the United States agreed to set its auto import tariff on Korean vehicles at 15 percent.

Hyundai Motor, however, said the decision is not primarily aimed at defending itself against the U.S. auto tariff.

“Both carmakers decided to push for the joint auto development, as part of an advanced step to fulfill our previous MOU,” an official from Hyundai Motor said.

Chevrolet's Colorado pickup truck / Courtesy of GM Korea

Experts say Hyundai Motor and GM seem to have decided to launch the co-developed vehicles for their bilateral cost-wise benefits.

“The economies of scale become ever more important to global carmakers amid the rapid rise of price-competitive Chinese cars, particulary in the electric vehicle (EV) industry,” said Lee Ho-geun, an automotive engineering professor at Daeduk University.

Both carmakers will be able to save on development and production costs by sharing platforms for the new vehicles, thereby gaining edges in developing more commercially valuable cars against emerging rivals from China, according to the professor.

“Regardless of the tariff aftermath, both carmakers appear to be joining force for the latest project from a long-term viewpoint, as they can generate huge synergies by using each other’s expertise in EVs and pickup trucks,” he said.