Hyundai, GM to co-build pickups, EVs in sweeping new alliance
Hyundai Motor Group and General Motors are joining forces in one of the biggest global automotive tie-ups to date.
The two companies aim to co-develop five new vehicles — including hybrids, gas-powered models and electric vans — to expand their presence across the entire American market and better navigate US tariff pressures.
Hyundai Motor said Thursday it will jointly develop five vehicles with GM. Four, including pickups, a compact car and a small SUV with internal combustion and hybrid options, will be for Central and South America, and one electric commercial van for North America.
Production is set to begin in 2028 with an annual capacity of over 800,000 units. Hyundai will lead development of the compact models and electric van, while GM will take charge of the midsize pickup platform.
This joint venture, which was first announced in September last year, marks a significant milestone in the strategic partnership between Hyundai, the world's No. 3 automaker by sales, and GM, ranked No. 5.
'Through our strategic partnership with GM … we can provide customers with exceptional design, superior quality, a strong commitment to safety and cutting-edge technology more efficiently than ever before,' said Hyundai Motor Company CEO Jose Munoz.
According to a Hyundai Motor Group spokesperson, 'the two companies will work together by exchanging development personnel to jointly create a new vehicle platform.'
'However, specific details regarding the production facilities and the models to be manufactured have yet to be finalized.'
Although Hyundai and GM will share common vehicle platforms, 'each company will sell these vehicles under their own brands with unique interior and exterior designs,' stated Shilpan Amin, chief procurement and supply chain officer of General Motors, in a separate press release.
A source familiar with the matter, speaking on condition of anonymity, noted, 'While the two companies will each retain the sales revenue from the jointly developed vehicles independently, they will jointly bear the costs and responsibilities of technology development.'
Industry watchers indicate that Hyundai and GM are expected to maximize each other's strengths and offset weaknesses to create a win-win partnership.
'On Hyundai's part, it could capitalize on GM's expertise in pickup trucks and car parts sourcing in the US, and GM could benefit from Hyundai's advanced electric, hybrid and compact vehicle technologies,' said Lee Ho-geun, an automotive engineering professor at Daeduk University.
Kim Pil-su, a car engineering professor at Daelim University, noted, 'It may look like Hyundai could be giving more than what GM has to offer, considering that the Korean carmaker is poised to target the Latin American pickup market, which is smaller than the US market dominated by GM.'
The US is the world's largest pickup truck market. As of last year, it was valued at $77.6 billion and is projected to grow at a compound annual growth rate of 2.3 percent from 2025 to 2034, according to a report by Global Market Insights.
Kim explained that by manufacturing jointly developed pickup trucks in GM's automotive plants outside the US, the US auto giant can mitigate the impact of reduced operating rates due to US tariffs. GM currently operates four car manufacturing and assembly plants in Mexico and Canada.
'Hyundai Motor, however, can partly ease US tariff pressures, utilizing GM's well-established auto parts supply chain in the US. This could lower costs in vetting and securing local parts suppliers,' Kim said. Due to 15 percent tariffs on Korean-made cars, the Korean auto manufacturer has been accelerating its plan to expand car parts sourcing in the region.
Combining Hyundai's hybrid technology with GM's pickup platform can also strengthen both companies' footing in the global market. The global hybrid pickup market is projected to grow from an estimated $11.5 billion in 2024 to about $25.3 billion by 2033, according to Verified Market Reports.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
7 minutes ago
- Korea Herald
In India, Trump's tariffs spark calls to boycott American goods
NEW DELHI (Reuters) -- From McDonald's and Coca-Cola to Amazon and Apple, US-based multinationals are facing calls for a boycott in India as business executives and Prime Minister Narendra Modi's supporters stoke anti-American sentiment to protest against US tariffs. India, the world's most populous nation, is a key market for American brands that have rapidly expanded to target a growing base of affluent consumers, many of whom remain infatuated with international labels seen as symbols of moving up in life. India, for example, is the biggest market by users for Meta's WhatsApp and Domino's has more restaurants than any other brand in the country. Beverages like Pepsi and Coca-Cola often dominate store shelves, and people still queue up when a new Apple store opens or a Starbucks cafe doles out discounts. Although there was no immediate indication of sales being hit, there's a growing chorus both on social media and offline to buy local and ditch American products after Donald Trump imposed a 50 percent tariff on goods from India, rattling exporters and damaging ties between New Delhi and Washington. Manish Chowdhary, co-founder of India's Wow Skin Science, took to LinkedIn with a video message urging support for farmers and startups to make "Made in India" a "global obsession," and to learn from South Korea whose food and beauty products are famous worldwide. "We have lined up for products from thousands of miles away. We have proudly spent on brands that we don't own, while our own makers fight for attention in their own country," he said. Rahm Shastry, CEO of India's DriveU, which provides a car driver on call service, wrote on LinkedIn, "India should have its own home-grown Twitter/Google/YouTube/WhatsApp/FB -- like China has." To be fair, Indian retail companies give foreign brands like Starbucks stiff competition in the domestic market, but going global has been a challenge. Indian IT services firms, however, have become deeply entrenched in the global economy, with the likes of TCS and Infosys providing software solutions to clients world over. On Sunday, Modi made a "special appeal" for becoming self-reliant, telling a gathering in Bengaluru that Indian technology companies made products for the world but "now is the time for us to give more priority to India's needs." He did not name any company. Even as anti-American protests simmer, Tesla launched its second showroom in India in New Delhi, with Monday's opening attended by Indian commerce ministry officials and US embassy officials. The Swadeshi Jagran Manch group, which is linked to Modi's Bharatiya Janata Party, took out small public rallies across India on Sunday, urging people to boycott American brands. "People are now looking at Indian products. It will take some time to fructify," Ashwani Mahajan, the group's co-convenor, told Reuters. "This is a call for nationalism, patriotism." He also shared with Reuters a table his group is circulating on WhatsApp, listing Indian brands of bath soaps, toothpaste and cold drinks that people could choose over foreign ones. On social media, one of the group's campaigns is a graphic titled "Boycott foreign food chains," with logos of McDonald's and many other restaurant brands. In Uttar Pradesh, Rajat Gupta, 37, who was dining at a McDonald's in Lucknow Monday, said he wasn't concerned about the tariff protests and simply enjoyed the 49-rupee ($0.55) coffee he considered good value for money.
Korea Herald
2 hours ago
- Korea Herald
Seoul shares end lower ahead of key US data
Seoul shares ended slightly lower Monday as investors stayed cautious ahead of US inflation data this week and the looming US deadline for imposing higher tariffs on goods imported from China. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index fell 3.24 points, or 0.10 percent, to close at 3,206.77. Trade volume was light at 302.01 million shares worth 10.23 trillion won ($7.3 billion). Decliners outnumbered gainers 578 to 298. The KOSPI bucked Wall Street gains on Friday (US time), when the Dow Jones Industrial Average rose 0.47 percent and the tech-heavy Nasdaq Composite advanced 0.98 percent. Institutions and individuals sold a net 214.27 billion won and 142.42 billion won worth of stocks, respectively, while foreigners bought a net 216.86 billion won of stocks. "The KOSPI remained largely unchanged as traders kept a close watch on key inflation data for clues on the future path of the Federal Reserve's interest rate policy," Kim Byung-yeon, an analyst at NH Investment & Securities Co., said. Traders were also watching whether the Aug. 12 deadline for talks on US duties on Chinese imports would be extended, he said. US President Donald Trump has threatened to impose higher tariffs, citing China's purchase of Russian oil. In Seoul, large-cap stocks were mixed. Market bellwether Samsung Electronics fell 1.11 percent to 71,000 won, but its chipmaking rival SK hynix surged 4.09 percent to 267,000 won. Leading shipbuilder HD Hyundai Heavy Industries lost 0.54 percent to 464,000 won, while Hanwha Ocean, the shipbuilding unit of Hanwha Group, tumbled 9.09 percent to 107,000 won. State-run utility Korea Electric Power Corp. shed 1.89 percent to 39,000 won, while leading steelmaker POSCO Holdings jumped 3.72 percent to 306,500 won. Leading battery maker LG Energy Solution gained 2.77 percent to 389,000 won, and No. 2 battery firm Samsung SDI advanced 3.21 percent to 225,000 won. The local currency was quoted at 1,388.00 won against the greenback at 3:30 p.m., up 1.6 won from the previous session. (Yonhap)
Korea Herald
3 hours ago
- Korea Herald
Korea seeks US leniency in polysilicon import probe
South Korea has formally asked the United States to grant favorable consideration to Korean companies as Washington weighs potential restrictions on imported polysilicon, a key material used in solar panels and semiconductors. According to a document posted Friday by the US Bureau of Industry and Security, Korea's Ministry of Trade, Industry and Energy urged the US to adopt a flexible approach toward Korean firms during its ongoing investigation into the impact of low-priced imports on the US polysilicon industry. 'Korea is a net importer of high-quality polysilicon from the United States. At the same time, Korea and its companies have established a secure supply chain for polysilicon to US importers and US companies,' the ministry wrote. 'If import restrictions on polysilicon are introduced, we respectfully request that special consideration be given to allow for flexible application to Korean companies.' The investigation, launched July 1 under Section 232 of the US Trade Expansion Act of 1962, examines national security concerns related to imported goods. US officials have warned that low-cost polysilicon imports are forcing domestic plants to shut down. Global polysilicon prices have declined in recent years as China — which now accounts for nearly 80 percent of global supply — has flooded the market with state-backed, low-priced products. IBK Securities estimates Chinese polysilicon prices at around $5 per kilogram, compared with $18 to $25 per kilogram for equivalent non-Chinese products. In its submission, Korea warned that restricting polysilicon imports could undermine US efforts to boost domestic production of solar panels and semiconductors. It cited Korean companies, including Hanwha Qcells and OCI Holdings, that are involved in US solar projects. 'Korean-invested companies that are helping to grow US renewable energy and semiconductor manufacturing are importers of polysilicon, as well as consumers of US-produced polysilicon,' the ministry said. 'Broadly applied tariffs or other import restrictions on polysilicon risk disrupting supply chains that are important to both economic and national security.' Hanwha Qcells and OCI Holdings also filed separate statements to the bureau, stressing that their supply chains do not use low-cost Chinese polysilicon. Currently, Hanwha Qcells mainly sources polysilicon from OCI's Malaysian production facilities. Additionally, OCI's US subsidiary, Mission Solar Energy, manufactures solar modules in the US using polysilicon supplied from the Malaysian plant. Industry officials warned that sweeping restrictions could harm even allied nations' companies operating in the US. 'US polysilicon production is currently limited, while US demand for power is surging,' one industry source said. 'If broad import restrictions are implemented in this environment, even companies from allied nations that are building supply chains and investing in US manufacturing could face indirect damage.'
