General Motors and Hyundai are said to be in talks that would lead to significant product sharing in the pickup and commercial EV van segments, according to a new report. Such a move would expand on the alliance the two automakers recently announced focusing on hydrogen fuel-cell technology. More from Headlight.News.
If the alliance is locked down Hyundai would provide GM with electric commercial vehicles like this ST1.
Hyundai would like to expand its modest presence in the North American pickup truck market. General Motors wants to add an all-electric van to its own line-up. The solution may see the two manufacturers come together in a new product-sharing deal, according to a Reuters report.
Such an arrangement between the two automakers would expand upon an already existing alliance that sees them working together on hydrogen fuel-cell technology. And the relationship could grow even larger, with other product sharing in markets such as Brazil, as well as joint purchasing and other backend programs.
Such a deal would, for GM, come as it continues to wind down an earlier alliance with Honda that had seen the two work together on EVs, fuel cells and autonomous vehicle technology.
What’s new
While Hyundai would like to get a version of the Chevrolet Silverado, GM has focused on providing a variant of the smaller Chevy Colorado.
The proposed alliance comes at a critical time for the auto industry. Automakers are investing massive amounts of capital in the development of technologies such as EVs, fuel-cells and self-driving vehicles, and alliances are seen as a way to spread out such costs. Then there’s the growing threat from Chinese domestic brands like BYD and Geely that have rapidly gained market share in China, Europe and other parts of the world. The trade wars being kicked off by U.S. President Donald Trump are adding to the challenges.
Based on documents it has viewed, along with background conversations, Reuters reported that the proposed alliance would see the Korean automaker produce two electric commercial vans for sale in North America by both GM and Hyundai. Initial production would begin in South Korea but a production site in North America could be added by 2028. A source quoted by Reuters said options would include a new Hyundai plant, the expansion of an existing facility – which could include the Hyundai Motor Group’s Metaplant in Georgia – or the use of a contract manufacturer.
While Hyundai currently offers the compact Santa Cruz pickup, the automaker would turn to GM to provide larger options. The talks are looking at a Hyundai-branded version of the midsize Chevrolet Colorado and GMC Sierra. GM has not offered up a rebadged version of its full-size Chevy Silverado and GMC Sierra, however.
Additionally, Hyundai has raised the possibility of providing a small SUV that GM could add to its Brazilian line-up.
Hyundai steps in as Honda moves out of the picture
A worker at the GM-Honda fuel-cell plant in Brownstown Twp, Michigan.
Last September, General Motors and Hyundai signed a Memorandum of Understanding, or MOU, to explore ways to collaborate on the development of hydrogen technology. That could eventually supplant a long-running alliance between GM and Honda. While those two companies currently produce fuel-cell stacks at a plant in suburban Detroit Honda last month said it was going to go it alone on the development and production of next-gen hydrogen technologies.
GM had a number of other ties to the Japanese automaker and is assembling both the Honda Prologue and Acura ZDX EVs based on the same platform as its Chevrolet Blazer EV. But Honda’s next battery-electric models are being developed in-house.
Honda and GM also have gone their own ways on the development of autonomous vehicle technology. The Detroit automaker recently shut down its San Francisco-based Cruise subsidiary, moving AV operations in-house< Honda has done the same.
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More to come?
GM may also get a version of the Hyundai Creta SUV for the Brazilian market.
A potential relationship between Hyundai and GM has been building for months, starting with the fuel-cell MOU. Hyundai first indicated that it could supply GM with electric commercial vans last January.
Reuters is the first to report on what could become the next step, with GM providing its new ally with pickups.
And the Detroit automaker appeared to leave open the possibility the alliance could continue to grow, noting in a statement that, General Motors declined to comment on specifics of the negotiations but said in a statement “Both companies continue to explore potential areas of collaboration.”
Such alliances increasingly have become the norm in today’s auto industry as manufacturers look to fill in gaps without breaking the bank. Both Hyundai and GM are also looking for ways to increase sales and earnings outside of China as they watch emerging domestic brands like BYD and Geely gobble up an increasing share of the vast market. GM, for one, has announced significant losses there and recently said it would scale back production.
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