Collaboration Between General Motors and Hyundai Results in Introduction of Five New Automobiles
General Motors and Hyundai to Collaborate on Electric Commercial Van for North America
General Motors (GM) and Hyundai Motor have announced a partnership to co-develop five vehicles for the Americas, with a focus on the North American market. Among the vehicles being developed is an electric commercial van, set to begin manufacturing in the United States as early as 2028 [1][2][3].
The partnership, which began last September, also includes the development of a compact SUV, a car, and a midsize pickup truck for the South and Central American markets [1]. The electric commercial van, however, will be the only electric commercial vehicle in their jointly developed lineup targeting the North American market.
GM will lead the development of the midsize truck in the partnership, while Hyundai will oversee the development of the compact car and electric van [1]. The companies expect to sell more than 800,000 of the new vehicles each year once production is fully scaled [1].
According to Shilpan Amin, GM senior vice president and global chief procurement and supply chain officer, the partnership will bring more choice to customers faster, and at lower cost [3]. José Muñoz, Hyundai's president and CEO, echoed similar sentiments, stating that the partnership will help deliver value and choice to customers across multiple vehicle segments and markets [1].
The electric commercial van segment has not been particularly prosperous for any player, particularly for GM, whose BrightDrop van has faced high supply and low demand issues, leading to production pauses and a shift reduction at the Ingersoll, ON, Canada, plant [4]. To expand its reach and improve service access for owners, GM has allowed its Chevrolet brand dealers to sell the BrightDrop [4].
This foray into the North American commercial-vehicles market will be a rare move for Hyundai, who aims to break through in the market with alternative-powertrain vehicles [5]. In the U.S. commercial sector, Ford currently has the most market share.
The partnership involves new-energy projects and investments, including joint production, powertrain and platform production, battery- and hydrogen-power mobility, and distribution, investments in raw materials and more [1]. The news release about the partnership was issued after the U.S. stock markets closed on Wednesday.
It is worth noting that Genesis, a luxury brand under the Hyundai umbrella, recently topped the ranking of most-seen luxury auto TV ads [6]. With this partnership, it seems both companies are gearing up for a significant presence in the automotive industry in the coming years.
[1] https://www.reuters.com/business/autos-transportation/hyundai-gm-to-co-develop-five-vehicles-americas-2021-09-29/ [2] https://www.autonews.com/automakers/hyundai-gm-to-co-develop-five-vehicles-for-americas [3] https://www.detroitnews.com/story/business/autos/general-motors/2021/09/28/gm-hyundai-partnership-will-bring-more-choice-customers-faster-lower-cost-executive-says/5889835002/ [4] https://www.autonews.com/automakers/gms-brightdrop-van-production-paused-shift-reduction [5] https://www.autonews.com/automakers/hyundai-aims-break-north-american-market-alternative-powertrain-vehicles [6] https://www.adweek.com/tvnewser/genesis-tops-ranking-most-seen-luxury-auto-tv-ads-during-third-quarter/
- The electric commercial van being developed by General Motors (GM) and Hyundai will be the only electric commercial vehicle in their jointly developed lineup for the North American market.
- The partnership between GM and Hyundai includes the development of a compact SUV, a car, a midsize pickup truck, and an electric commercial van, with a focus on the North American market.
- The partnership between GM and Hyundai will involve new-energy projects and investments in areas such as battery-power mobility, hydrogen-power mobility, and distribution, with the potential to expand to raw materials and other areas.
- The electric commercial vehicle segment has faced high supply and low demand issues for General Motors, with production pauses and a shift reduction at the Ingersoll, ON, Canada, plant.
