Collaborative automobile manufacturing initiative commences between General Motors and Hyundai - discovering the motivation behind it
General Motors (GM) and Hyundai Motor have announced a strategic joint venture to co-develop and produce five new vehicle models, primarily for the Central and South American markets, with one model for North America. The partnership, which begins in 2024, aims to launch these vehicles by 2028, starting with a mid-size pickup truck already under development in Brazil[1][3][4].
The five co-developed models include: - A mid-size pickup truck (GM-led platform, developed in Brazil, for South America) - Compact cars, pickups, and SUVs (Hyundai-led platforms, for Central and South America) - An electric commercial van (for North America, a smaller version of Chevrolet’s BrightDrop vans)[1][4]
Each vehicle will be sold under both GM and Hyundai’s individual brands with distinct interior and exterior designs but share engineering and manufacturing innovations from both companies[1]. The joint venture aims to produce over 800,000 vehicles annually across these models[4].
The venture also includes joint sourcing initiatives for raw materials, transport, and logistics across North and South America, aiming to improve cost efficiency, sustainability, and supply chain resilience. The partnership will cover diverse propulsion technologies such as internal combustion engines, hybrids, battery electric, and hydrogen fuel cells[1][2][5].
The electric commercial van, while not part of the initial models set to begin production in 2028, is expected to be developed for the U.S. market, with launch expected no earlier than 2028. Details about the electric commercial van, such as its specifications and powertrains, have not been disclosed[1].
The new alliance comes as a response to growing competition from Chinese manufacturers in the South American market. While Chinese automakers have been growing their presence with competitively priced models and electric vehicles, GM-Hyundai’s combined leverage from extensive global assembly plants, technology patents, and diversified propulsion strategies give them a strong platform to challenge these entrants effectively[1][4].
In summary, the GM-Hyundai joint venture is a strategically timed, large-scale cooperative effort focused on launching multiple models adapted to the Americas by 2028, with ambitious production targets and integrated sourcing aimed at cost and sustainability benefits, setting a strong competitive stance against Chinese automakers in South America.
[1] Hyundai Motor Company press release, 2023 [2] Automotive News, GM-Hyundai to collaborate on vehicle development, 2023 [3] Reuters, GM-Hyundai to co-develop vehicles for Central and South America, 2023 [4] The Detroit Bureau, GM and Hyundai to jointly develop five new vehicles, 2023 [5] Green Car Reports, GM and Hyundai to collaborate on advanced vehicle technologies, 2023
- The strategic joint venture between General Motors (GM) and Hyundai Motor involves cooperation in finance, manufacturing, and transportation industries, with a focus on vehicle development and production.
- The business alliance between GM and Hyundai encompasses diverse propulsion technologies, including internal combustion engines, hybrids, battery electric, and hydrogen fuel cells in various vehicle models.
- The partnership between General Motors and Hyundai aims to produce over 800,000 vehicles annually, with one model planned for the North American market being an electric commercial van similar to Chevrolet's BrightDrop vans.
