By Hyunjoo Jin, Norihiko Shirouzu and Heekyong Yang
SEOUL (Reuters) – Hyundai Motor and General Motors are close to finalizing a deal for Hyundai to share two electric commercial van models with the U.S. auto giant, according to a source familiar with the talks and Hyundai documents reviewed by Reuters.
In return, GM might provide Hyundai with pickup trucks to sell under its own brand in North America, the source said.
Such arrangements could kick off a broader partnership as the companies, two of the world’s largest automakers, hold wide-ranging discussions, the source said. The documents reviewed by Reuters show Hyundai is considering deals with GM that include joint purchasing or development involving computing chips, next-generation batteries and battery materials.
Like many global automakers, GM and Hyundai are facing rising competition from Chinese EV makers and the threat of a global trade war, prompting them to look to share products to slash spending.
Hyundai would produce vans to be sold under both its own and GM brands, initially importing them from South Korea, according to the documents and the person familiar with the talks. But Hyundai is considering manufacturing the vans in North America by 2028. The person said Hyundai is exploring building a new plant, adding production to an existing facility or contracting out the manufacturing.
The talks on pickups focus on GM sharing its midsized trucks, branded as the Chevrolet Colorado and GMC Canyon in the United States, one of the sources said. Hyundai also wants to sell a version of GM’s popular full-sized pickups, the source said, but GM hasn’t put that option on the table.
Any pickup-sharing deal likely will take longer to finalize than the commercial van arrangement, the person said.
The automakers are also discussing the possibility of Hyundai providing GM with compact SUVs it could add to its product line-up in Brazil, the source said.
Hyundai said in January that it is in talks to supply electric commercial vehicles to GM as part of a preliminary agreement to explore how the automakers could cooperate on vehicles, supply chains and clean-energy technologies to cut costs and speed development.
Details of the partnership talks, including a potential pickup sharing deal, are reported here for the first time.
General Motors declined to comment on specifics of the negotiations but said in a statement: “Both companies continue to explore potential areas of collaboration.”
Hyundai said in a statement that nothing has been finalized in ongoing talks but that the automakers are exploring deals “across key strategic areas.”
COMPETITIVE THREATS, GEOPOLITICAL TENSIONS
Chinese EV producers have upended the auto industry with high-tech, low-cost models and GM is among many legacy automakers losing sales in China, the world’s largest auto market, and aiming to boost revenues elsewhere. Hyundai’s business in China is minimal but it faces the threat of Chinese exports globally.
Both automakers also face geopolitical tensions heightened by tariffs being levied or threatened by U.S. President Donald Trump, which could curtail their ability to use imported components and push them to set up more U.S. manufacturing.
Tariff threats are also adding uncertainty to the GM-Hyundai partnership talks, according to two sources familiar with the matter.
A commercial van deal could help GM better compete with the Ford Transit and Ram ProMaster without the major investment of developing its own model, said Sam Fiorani, vice president at research firm Auto Forecast Solutions.
GM needs new commercial vans, he said, because it is expected to phase out production of its decades-old Chevrolet Express and GMC Savana vans soon.
Hyundai is considering sharing its compact electric commercial vans based on its ST1 electric commercial vehicle. It would also give GM a larger electric commercial van that Hyundai is developing to challenge the Mercedes-Benz Sprinter, according to the documents and one of the sources. The two automakers might share sales and service networks for the vans, the Hyundai documents show.
The smaller van would be initially assembled at Hyundai’s factory in the South Korean city of Ulsan and potentially supplied to GM starting in mid-2027, the documents say. The model will be followed in 2028 by the larger van, similar in size to Hyundai’s Solati.
The new North American commercial van factory under consideration would target production of 60,000 by 2030 and more than 100,000 in 2032.
SMALL SUVS, PICKUP TRUCKS
Hyundai is increasing U.S. sales while its China sales decline and emerged – along with GM – as a challenger to Tesla in the EV market. But unlike GM, Hyundai has little presence in the lucrative U.S. commercial vehicle and truck market.
Hyundai can use the GM partnership to gain a foothold in those segments, where rivals like Toyota and Nissan struggle to compete with the Detroit Three automakers, said Fiorani, of Auto Forecast Solutions.
As Hyundai aims to convince GM to share its hot-selling pickups, it is considering giving GM a small sport utility vehicle called the Creta to refresh its model lineup in Brazil, one of the sources said.
A third source said GM hopes to partially make up for its struggling business in China through Hyundai partnerships. GM, the person said, could use Hyundai’s small and mid-sized vehicle platforms to potentially expand in South American markets.
(Reporting by Hyunjoo Jin and Heekyong Yang in Seoul, Norihiko Shirouzu in Austin, Texas; Additional reporting by Kalea Hall in Detroit; Editing by Brian Thevenot and Nia Williams)
