GM, Hyundai in talks to share pickups and electric vans in N America

SEOUL: Hyundai Motor and General Motors are close to finalizing a deal for Hyundai to share two electric commercial van models with the US 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 globaltrade 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.”

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 US President Donald Trump, which could curtail their ability to use imported components and push them to set up more US 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.