General Motors, Hyundai to Develop Five Vehicles Amid Rising Competition
Four of the vehicles — a compact SUV/car/ pickup, and a mid-size pickup — are targeted at Central and South American markets and will support both internal combustion and hybrid powertrains.
At full production scale, the companies expect to roll out at least 800,000 vehicles annually.
The partnership will help GM compete against rising Chinese players in the Latin American market, where the Detroit automaker has had a strong presence for decades.
The two global automakers will also co-develop an electric commercial van for the North American market. Reuters in March reported that the two companies were nearing a deal to share two commercial electric vans.
Global automakers face stiff competition from Chinese EV makers and a trade war impacting imports of crucial parts, including rare earth materials, which has pushed production costs higher.
This is the first major partnership for vehicle development for Hyundai Motor.
The deal would give GM access to hybrid technology it lacks, while enabling Hyundai to enter into new segments such as vans in North America and mid-sized pickups, Kim Sung-rae, an analyst at Hanwha Investment & Securities, said.
The two companies did not say where the models will be produced. Hyundai, which has a factory in Alabama, said it will expand the production capacity of its new factory in Georgia. The company also has a factory in Brazil.
GM's budding partnership with Hyundai follows an unwinding of several projects the Detroit automaker had pursued with Honda over the past decade.Notably, GM and Honda in 2023 scrapped a $5 billion plan to jointly develop affordable electric vehicles.
Chinese automakers have released several high-tech, low-cost models, putting pressure on legacy automakers such as GM to slash expenses and streamline manufacturing processes. To compete with these rivals, many automakers have explored partnerships as a way to share development costs, especially for battery-powered models.
Cutting costs is even more pressing as tariffs have added billions of dollars in expenses for automakers around the globe. The Hyundai-GM announcement comes after the United States and South Korea last week reached a trade agreement to charge a 15% tariff on imports from South Korea, including autos.
This is among several deals between a South Korean company and a U.S. firm announced in recent weeks, following Samsung Electronics' 005930.KS chip deal with Tesla TSLA.O and Apple AAPL.O, and LG Energy Solution's 373220.KS battery deal with Tesla.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yomiuri Shimbun
11 minutes ago
- Yomiuri Shimbun
Japan to Export Frigates to Australia: Use Joint Development to Strengthen Foundations of Defense Industry
The high-tech capabilities of a Japanese frigate, equipped with a variety of functions such as anti-ship and antiaircraft capabilities and operable by a small number of personnel, seem to have been appreciated. It is hoped that the first joint defense development project between Japan and Australia will be utilized to strengthen systems for safeguarding maritime security and foster the defense industry. The Australian government has announced that it will accept Japan's proposal regarding a new model of frigates that the Australian navy plans to introduce. The two countries will jointly develop a vessel with enhanced capabilities based on the Mogami-class frigate manufactured by Mitsubishi Heavy Industries, Ltd. for the Maritime Self-Defense Force. Australia plans to introduce 11 vessels with a 2030 start of operations in mind. The first three vessels will be built in Japan before construction is transferred to Australia for the remaining eight vessels. Australia narrowed down its candidates to Japanese and German manufacturers in autumn last year and since then has held discussions on which to choose. Australia ultimately chose Japan's proposal because it attached importance to such points as Japan's model being operable with a crew of 90, about half the number required for comparable conventional vessels, mainly thanks to the digitalization of instruments. The Australian military is reportedly facing a serious shortage of personnel. Australia is rushing to enhance its naval capabilities due to a sense of caution about China. In February, the Chinese military conducted live-fire training exercises in waters near Australia. China is also deepening security cooperation with Pacific island nations. The waters connecting Japan and Australia are important maritime transport routes for both countries. The waters around the small island nations can be said to be a strategically important area for Australia. China's behavior, as if it is trying to bring these waters under its influence, is unacceptable. The MSDF also plans to eventually have a total of 24 Mogami-class frigates. Use of the same vessels by Japan and Australia and improvement of mutual operational capabilities will effectively help deter China's activities. There remain issues to be resolved in the joint development plan. Australia is said to want to equip its new frigates with U.S.-made cruise missiles. This will require construction in which the hulls are modified. The Japanese side also will need to smoothly transfer technology to Australian engineers. Japan must make steady preparations for a formal contract to be concluded early next year. This is the first time Japan will export large-scale military equipment. For this reason, some may view this as a shift in the nation's postwar arms export policy, but that view is mistaken. In 1976, the Cabinet of then Prime Minister Takeo Miki decided on a de facto total ban on arms exports. Before then, Japan allowed exports in a limited manner under the Three Principles on Arms Exports established in 1967, which prohibited exports to countries such as those involved in conflicts. In 2014, the government established the Three Principles on Transfer of Defense Equipment and Technology, marking a shift toward exports with certain conditions. With an increasingly severe security environment, this is an era when it has become necessary to jointly develop equipment and deepen defense cooperation with friendly countries. (From The Yomiuri Shimbun, Aug. 7, 2025)
Nikkei Asia
2 hours ago
- Nikkei Asia
India's Reliance in bind over Trump's Russian oil pressure
Energy Top Indian buyer of Russian crude has ramped up purchases even as state entities pull back Reliance Industries bought 519.6 million barrels of crude oil from Russia from March 2022 through Aug. 4, roughly 20% more than the next biggest Indian importer. (Nikkei montage/Source photos by Reuters) SAYAN CHAKRABORTY BENGALURU -- U.S. President Donald Trump's tariff broadside against India over its trade ties with Moscow has put the spotlight on Indian billionaire Mukesh Ambani's Reliance Industries, which has procured more Russian crude than any local refiner since Russia invaded Ukraine over three years ago.
Yomiuri Shimbun
2 hours ago
- Yomiuri Shimbun
Japan's Nikkei Stock Average Hits Record High on Wall Street Rally, Solid Earnings
TOKYO, Aug 7 (Reuters) – Japan's Topix index touched a record high on Thursday, tracking strong overnight gains on Wall Street, while solid corporate earnings from domestic firms reinforced expectations of wage growth. The broader Topix .TOPX was up nearly 1% at 2,993.14, as of 0206 GMT. Earlier in the session, the benchmark index hit an all-time peak of 2,993.21. The Nikkei .N225 climbed 0.9% to 41,151.07. Both indexes were on track for a third consecutive session of gains, provided the current momentum holds. The three-day rally follows a sharp decline on Monday, when the Nikkei posted its largest drop in two months amid growing concerns over the U.S. economy and trade. 'The market is now convinced that the U.S. economy will not slow down,' said Hiroyuki Ueno, chief strategist, Sumitomo Mitsui Trust Asset Management. 'That is important for the Bank of Japan's decision process for raising interest rates. With solid corporate earnings results and a trend for wage increases, the market now expects the BOJ to raise rates by the end of the year,' Ueno said. However, government data released on Wednesday indicated that Japan's real wages fell for a sixth consecutive month in June, as inflation continued to outpace pay growth. The trend clouded the outlook for a BOJ policy shift, with wage growth seen as a key indicator for sustainable inflation. There is growing expectation that the U.S. Federal Reserve could begin cutting interest rates as early as September to support the economy. Shares of Mitsubishi UFJ Financial Group 8306.T rose 1.8%, providing the biggest boost to the Topix, while Sumitomo Mitsui Financial Group 8316.T gained 1.56%. M3's shares surged 22% after Goldman Sachs raised the target price for the medical services platform operator to 2,300 yen from 2,250 yen. Cosmetic maker Shiseido 4911.T jumped 10%. Chip-making equipment maker Tokyo Electron 8035.T fell for a third day, falling 2.7% on Thursday to weigh on the Nikkei the most. Chip-testing equipment maker Advantest 6857.T fell 0.7%. Shares of chipmakers declined on concerns over a potential slowdown in global chip production after U.S. President Donald Trump said Washington would impose a tariff of about 100% on semiconductor chips imported from countries not producing in America or planning to do so. Of the more than 1,600 stocks trading on the Tokyo Stock Exchange's Prime Market, 70% advanced and 26% fell, and 3% were flat.
