[K-Tech] Hyundai Motor, General Motors to jointly develop 5 new vehicles for North American markets

Hyundai Motor Group chairman Chung Eui-sun right and General Motors CEO Mary Barra shake hands during a global alliance signing ceremony in New York Sept 12 2024 Courtesy of Hyundai Motor Company — Hyundai Motor Group chairman Chung Eui-sun (right) and General Motors CEO Mary Barra shake hands during a global alliance signing ceremony in New York, Sept. 12, 2024. Courtesy of Hyundai Motor Company

SEOUL, August 7 (AJP) - Hyundai Motor Company and General Motors (GM) announced on Thursday their plans to jointly develop and release 5 new vehicles by 2028, including a commercial electric vehicle model.

Four of the planned vehicles, a mid-sized pickup and a compact pickup truck, a compact sedan, and a compact sport utility vehicle, are to target Central and South American markets. All vehicles are to have the flexibility to use internal combustion or hybrid propulsion systems. Hyundai and GM are to also release a commercial electric vehicle to target North America as early as 2028.

Hyundai is to lead the development of the compact vehicle and commercial EV, and GM is expected to lead the engineering of the mid-sized truck. About 80,000 units are expected to be produced and sold annually once the two top carmakers start their mass production phase.

The collaboration stems from a memorandum of understanding the two firms signed last September. However, reportedly, the announcement of the collaboration was postponed due to prolonged discussions over car lineups.

"Hyundai's strategic collaboration with GM will help us continue to deliver value and choice to our customers across multiple vehicle segments and markets," said Jose Munoz, president and CEO of Hyundai Motor. "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," the Hyundai Motor CEO added.

"By partnering together, GM and Hyundai will bring more choice to our customers faster, and at lower cost," said Shilpan Amin, GM senior vice president and global chief procurement and supply chain officer, adding: "These first co-developed vehicles clearly demonstrate how GM and Hyundai will leverage our complementary strengths and combined scale."

The two companies also plan joint sourcing initiatives in North and South America for materials, transport, and logistics. Further areas for potential joint operations include raw materials, components, and complex systems.

Hyundai Motor and GM also agreed to explore collaboration on low-carbon emissions steel as part of their commitment to sustainable manufacturing.

Kim Dong-young davekim0807@ajupress.com