South-Korean Hyundai Motor Company and Detroit automaker General Motors group announced on Thursday that they are partnering to co-develop five vehicles for the American continent, set to launch in 2028.
Hyundai and GM are expected to jointly produce two cars and two pickups for the Central and South American markets, using internal combustion engine (ICE) vehicles or hybrid powertrains.
General Motors will lead the development of the mid-size truck platform, for which “design and engineering work is underway.”
In North America, GM and Hyundai intend to co-develop an electric commercial van, mostly led by Korean brand. The van will be developed and produced in the US, according to a press release by both companies.
Production is expected reach 800,000 units yearly, once fully scaled.
According to Billionfold Asset Management analyst An Hyung-jin, quoted by Reuters, competition from Chinese automakers in South America is “hard to beat” as they “already are leading in the electric-vehicle market with low prices.”
The joint vehicle development adds specificity to the broader agreement signed in late 2024, in which GM and Hyundai agreed on exploring “joint product development, manufacturing and clean energy technologies.”
Last month, General Motors dropped the plans to produce electric vehicles in its Orion plant.
The Detroit based automaker had said earlier this year that the Orion plant is one of three facilities — together with Fairfax, in Kansas, and Spring Hill, in Tennessee — that will share a $4 billion investment to expand production of ICE-powered vehicles.
The Hyundai–GM announcement comes a week after the US and South Korea have agreed on a trade agreement, according to which the Trump Administration sets a 15% tariff on imports from the Asian country.
The 15% rate takes effect from Thursday, according to the US President.
According to South Korea’s Industry Minister Kim Jung-kwan, South Korea and the United States still need to reach an agreement on the 25% tariff the US imposed earlier this year on imported vehicles and auto parts.
The duty is expected to be reduced for South Korean imports, as the 15% tax supposedly includes vehicles.
