AUTONEWS

GM and Hyundai negotiate sharing of vans and pickups involving Brazil

Hyundai Motor Co. and General Motors Co. are close to finalizing a deal for the South Korean automaker to share two electric commercial van models with the U.S. automaker, in a deal that could involve Brazil, according to people familiar with the matter. In exchange, GM could supply Hyundai with pickup trucks to sell under its own brand in North America. Such deals could kick off a broader partnership as the companies, two of the world’s largest automakers, hold wide-ranging discussions, one of the people said. 

Documents reviewed by Reuters show that Hyundai is considering deals with GM that include joint purchases or development involving computer chips, high-end batteries and battery materials. Under the discussions, Hyundai would build vans to be sold under its own brands and GM’s, initially importing them from South Korea, according to the documents and the person. But Hyundai is considering building the vans in North America by 2028. 

The source said Hyundai is exploring building a new plant in the U.S., adding production to an existing facility or outsourcing manufacturing. The pickup truck talks center on GM sharing its midsize models — the Chevrolet Colorado and GMC Canyon — in the United States, one of the sources said. Hyundai also wants to sell the company’s larger models, the source said, but GM has not put that option on the table. Any pickup-sharing deal would likely take longer to finalize than the van deal, the source said. 

As Hyundai seeks to persuade GM to share its best-selling pickups, the South Korean automaker is considering offering GM the Creta SUV to refresh its lineup in Brazil, the world’s sixth-largest auto market, one of the sources said. 

A third source said GM hopes to partially offset its struggling business in China through partnerships with Hyundai. GM, the source said, could use Hyundai's small- and mid-size vehicle platforms to potentially expand into South American markets, where sales have been led for years by Stellantis.

In exchange, GM could supply Hyundai with pickup trucks to be sold under the Korean brand in North America, a deal specifically for the U.S. market. Like other global automakers, GM and Hyundai are facing competition from China and are now seeking partnerships to share products and reduce costs.

These deals could mark the beginning of a broader partnership between the two automakers, which are among the largest in the world. According to the source, Hyundai would produce the vans to be sold under both its own brands and GM's.

The vehicles would initially be imported from South Korea, but Hyundai is considering the possibility of manufacturing them in North America by 2028.

The company is evaluating options such as building a new factory, expanding an existing facility or outsourcing production. In the case of pickup trucks, GM would share its midsize models, such as the Chevrolet Colorado and GMC Canyon, with Hyundai.

The Korean automaker is also interested in selling a version of GM’s popular full-size pickup trucks, but it has not yet been discussed by the American automaker. Any deal involving pickup trucks is likely to take longer to finalize than that for commercial vans.

In addition, the automakers are discussing the possibility of Hyundai supplying GM with compact SUVs to be incorporated into the American product line in Brazil.

This seems odd, given that GM already has a solid portfolio in Brazil, and will also import larger Chinese cars.

Reuters’ term “compact” refers to midsize in Brazil, but even so, GM has the New Equinox. What will come next? Make two bets…

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