Hyundai and the American General Motors (GM) signed an agreement in 2024 to develop new vehicles and technologies, and the South Korean brand has now confirmed that it intends to sign binding agreements with GM involving various areas of cooperation, including joint purchasing of parts.
Additionally, Hyundai has revealed that it is negotiating with GM for the supply of commercial electric vehicles for its American competitor, considering that the South Korean brand expects a decline in demand to pressure electric vehicle sales in 2025.
“We are considering rebranding our commercial electric vehicles to supply to GM. The agreement will pave the way for our entry into the North American commercial vehicle market”, said Hyundai’s CFO, Lee Seung Jo.
The negotiations between Hyundai and GM are taking place at a time when the automotive industry is on edge due to political uncertainty in the U.S., after the new president, Donald Trump, announced plans to impose tariffs on products exported to the U.S., the second largest automotive market in the world, after China.
“We expect more trade uncertainties this year than ever due to potential policy changes not only in the domestic market but also in the U.S., at a time when Europe is preparing to implement stricter emission rules”, said Lee.
The South Korean brand also announced that it is planning to localize more production in the U.S. in order to minimize any tariff impact. Additionally, it confirmed that it will produce hybrid vehicles at its new production facility in Georgia.
