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Investing.com-- General Motors Company (NYSE:GM) and Hyundai (OTC:HYMTF) Motor (KS:005380) on Wednesday evening said they had agreed to co-develop five new vehicles, as the two automakers deepened their partnership to help weather increased competition in the auto industry.
The two plan to develop four vehicles for central and South American markets, including a compact SUV, car and pick-up, and a mid-size pick-up, all with options for both internal combustion and hybrid engines. The two will also develop an electric commercial van for North American markets, Hyundai and GM said in a joint statement.
The two expected sales of the co-developed vehicles to cross 800,000 units annually, once production capacity is fully scaled.
Hyundai will lead development in the compact vehicle and electric van, while GM will lead development of the mid-size truck platform.
GM and Hyundai had signed a framework agreement in September 2024 to partner in developing new cars and technologies. The partnership stands to give GM access to Hyundai’s hybrid tech, which it lacks in its vehicles, while Hyundai stands to gain a greater footing in American markets.
Both firms are grappling with heightened competition in key markets such as China and Europe, which have been largely overtaken by electric vehicles.
Hyundai– which is the world’s third-largest by production volume– has vowed to ramp up output and investment in the U.S., as it looks to dodge President Donald Trump’s trade tariffs. Hyundai had earlier this year committed a total $21 billion investment to the United States.