General Motors (GM) and Hyundai have announced that they will co-develop the first five vehicles as part of their strategic collaboration, marking a significant step in their partnership. The two automotive giants will leverage their combined scale and expertise to launch new models for both the North and South American markets, with a focus on delivering value and accelerating innovation.

According to GM, the collaboration will yield four new vehicles specifically for the Central and South American markets, including a compact SUV, a car, and two pickup trucks—one compact and one mid-size. These models are designed with flexible architecture, allowing them to be equipped with either internal combustion or hybrid propulsion systems to suit regional demands. Additionally, the partnership will produce a new electric commercial van for the North American market.

On the agreement, GM will take the lead in developing the platform for the mid-size pickup truck, while Hyundai will spearhead the development of the compact vehicle platform and the electric commercial van. Both companies will share common platforms to maximize efficiency, but will design unique interiors and exteriors to maintain their respective brand identities.

The strategic rationale behind this joint venture is clear: to deliver products to customers more quickly and at a lower cost.

“Our combined scale in North and South America helps us to more efficiently provide our customers more of what they want—beautifully designed, high-quality, safety-focused vehicles with technology they appreciate,” said José Muñoz, president and CEO of Hyundai Motor Company.

The two companies project annual sales for these co-developed vehicles to exceed 800,000 units once production reaches full capacity.

Shilpan Amin, GM’s SVP and global chief procurement and supply chain officer, echoed this sentiment, noting that the vehicles are targeted at the largest market segments.

“By partnering together, GM and Hyundai will bring more choice to our customers faster, and at lower cost,” he said.

Beyond vehicle development, the partnership will explore joint sourcing initiatives for materials and logistics in both North and South America. The companies have also committed to exploring collaboration on low-carbon emissions steel, reflecting a shared commitment to sustainable manufacturing.

Following the signing of a framework agreement in September 2024, both companies continue to assess additional joint programs and technologies, including battery electric and hydrogen fuel cell systems, for other global markets. The new vehicles for Central and South America are slated for a 2028 launch, with the North American electric van to be manufactured as early as the same year.