Hyundai Motor and U.S. General Motors (GM) Sign MOU for Comprehensive Strategic Collaboration (Yonhap)
SEOUL, Aug. 7 (Korea Bizwire) — Hyundai Motor Company and General Motors announced plans on Thursday to jointly develop five new vehicles as part of a sweeping strategic alliance aimed at expanding their presence across the Americas. The lineup is expected to roll out by 2028.
The partnership, first outlined in a memorandum of understanding signed last September, will produce four internal combustion and hybrid-compatible models for the Latin American market—including mid-size and compact pickups, a compact passenger car, and a small SUV—as well as an all-electric commercial van for North America.
The companies say the collaboration is designed to accelerate time-to-market and reduce platform costs, with each automaker leveraging its strengths: GM will take the lead on mid-size truck platforms, while Hyundai will focus on compact vehicles and the electric van.
Production is expected to exceed 800,000 units annually once the joint development program scales up, with both automakers sharing costs and platform infrastructure while customizing exterior and interior designs to reflect their respective brand identities.
Hyundai Motor Group Metaplant America (HMGMA) located in Ellabell, Savannah, Georgia, USA. (Image courtesy of Hyundai Motor)
“This is a significant milestone in our strategic collaboration,” said Hyundai Motor CEO José Muñoz. “By combining our strengths, we aim to offer customers better value and broader choices across segments and regions.”
GM Executive Vice President Shilpan Amin emphasized that the new vehicles are designed for high-demand segments in Latin America and North America. “This collaboration allows both companies to deliver a greater variety of products, faster and more cost-effectively,” he said.
While Hyundai and GM declined to disclose specific financial terms, they expect the cooperation to cut platform development costs by more than 50%, while unlocking long-term financial efficiencies in supply chain, logistics, and manufacturing.
The two firms are also exploring joint sourcing initiatives for raw materials and components in the Americas, along with potential collaboration on low-carbon steel technologies to advance sustainable manufacturing.
Both companies stressed that the delay in announcing the collaboration—originally expected earlier this year—was unrelated to ongoing trade negotiations between South Korea and the United States. The postponement stemmed from extended discussions to include a broader array of vehicles and optimize development efficiency.
Design and engineering work for the Latin American models is already underway, and the electric van could enter U.S. production as early as 2028. Additional joint programs targeting global markets and powertrain systems are currently under review.
Kevin Lee (kevinlee@koreabizwire.com)
