Summary
- GM and Hyundai are in talks about Hyundai supplying electric commercial vehicles to GM for sale in the North American market
- GM’s current offerings of all-electric commercial vehicles are slim, which could be expanded through this deal
- Hyundai does not currently sell commercial vehicles in the U.S. aside from the Santa Cruz
- The potential collaboration between Hyundai and GM also includes exploring other opportunities such as co-developing future vehicles
- Hyundai could rebadge a GM-made electric pickup as part of the collaboration efforts.
Article
GM and Hyundai Collaboration for Electric Commercial Vehicles
General Motors is looking to expand its offering of all-electric commercial vehicles with the help of Hyundai. The South Korean carmaker is in talks with GM to supply electric commercial vehicles in the U.S., with a deal expected to be finalized within the first quarter of the year. This collaboration could see Hyundai re-badging its commercial EVs and supplying them to GM, paving the way for Hyundai’s entry into the North American commercial vehicle market.
Hyundai’s Lack of Commercial Vehicles in the U.S.
Hyundai currently does not sell commercial vehicles such as vans, pickups, and trucks in the U.S., except for the compact Santa Cruz. Aside from a small experimental fleet of hydrogen-powered Class 8 trucks in California, the company’s commercial vehicle lineup is limited. The move to supply electric commercial vehicles to GM comes as Hyundai expects sales growth to halve this year due to softening demand and potential policy changes in key markets.
Memorandum of Understanding with General Motors
Hyundai and GM signed a memorandum of understanding last year to explore collaboration opportunities, including co-developing future electric, hydrogen, and internal combustion vehicles. While the deal was non-binding, both companies expressed interest in signing binding agreements, such as sourcing battery raw materials, steel, and potentially bringing cheaper EVs to the market. This collaboration could lead to a more diverse range of electric commercial vehicles for GM.
Rebadging GM-Made Electric Pickup
Recent reports suggest that Hyundai could rebrand a GM-made electric pickup as part of the collaboration between the two automakers. The move seems to be a bilateral badge-engineering exercise, where Hyundai would put its badge on a GM vehicle. This could allow Hyundai to enter the electric pickup segment in the U.S. market, leveraging GM’s expertise in the production of electric vehicles.
Potential Benefits of the Collaboration
By working together, GM and Hyundai could benefit from each other’s strengths in electric vehicle production. GM, with its expertise in electric pickups and vans, could benefit from Hyundai’s entry into the North American market with its commercial EVs. On the other hand, Hyundai could leverage GM’s production capabilities to expand its lineup and gain a foothold in the competitive U.S. market. The collaboration could result in a wider range of electric vehicles for both companies.
Conclusion
GM and Hyundai’s collaboration for electric commercial vehicles could mark the beginning of a mutually beneficial partnership between the two automakers. With Hyundai’s expertise in electric vehicles and GM’s production capabilities, the partnership could lead to a more diverse range of electric commercial vehicles in the North American market. As the deal progresses and binding agreements are signed, we can expect to see more innovations and developments in the electric vehicle segment from these two industry leaders.
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