GM, Hyundai Partner on Five-Vehicle Program to Counter Chinese Competition

General Motors Co. and Hyundai Motor Co. said they will co-develop five vehicles as the two automakers look to trim costs and defend market share against fast-growing Chinese rivals. The initiative, detailed in statements late Wednesday and Thursday, marks Hyundai’s first major product partnership with another manufacturer and extends a strategic alliance the companies formed in 2024. Four of the new models—a compact sport-utility vehicle, a compact car, a small pickup and a mid-size pickup—are aimed at customers in Central and South America and will be offered with internal-combustion or hybrid powertrains. The fifth product is an electric commercial van for North America that will build on Chevrolet’s BrightDrop architecture. Engineering work begins immediately, with market launches scheduled for 2028. Once production is fully ramped up, GM and Hyundai expect combined annual sales to exceed 800,000 units. Under the division of labor, GM will lead development of the mid-size truck platform, while Hyundai will take charge of the compact vehicles and the van. Each company will market the vehicles under its own brand badges. The venture allows both manufacturers to share development expenses, pool purchasing and broaden their line-ups as tariffs and rising investment needs squeeze margins. The United States currently imposes a 15% duty on South Korean vehicle imports, while Chinese automakers have been gaining ground in Latin America with low-cost electric models—pressures the Detroit and Seoul companies say the collaboration is designed to blunt.