U.S.-based carmaker General Motors (GM) is reportedly in talks with South Korea’s Hyundai Motor Company (HYMTF) for a commercial vehicle-sharing deal in North America, according to Reuters. Like many other global automakers, GM and Hyundai seek product-sharing to cut costs amid rising Chinese EV competition and trade war risks. While both automakers have denied reaching a final agreement, speculation is mounting that their negotiations for a broader collaboration are approaching the final stages. Meanwhile, tariff threats are adding uncertainty to the partnership talks, according to familiar sources.
GM, Hyundai Eye Strategic Alliance
According to the Reuters report, Hyundai and GM are discussing an agreement in which Hyundai would provide GM with two electric commercial van models. In return, Hyundai could gain access to GM’s pickup trucks to sell under its brand in North America. Additionally, Hyundai is considering joint procurement or development of computing chips, next-generation batteries, and battery materials.
Hyundai also plans to produce vans for both brands, initially importing them from South Korea, with potential North American production by 2028. For pickups, GM may share its midsize Chevrolet Colorado and GMC Canyon, but talks on Hyundai selling GM’s full-sized trucks are unresolved and expected to take longer than the van deal.
Notably, a van deal could help GM compete with Ford’s (F) Transit and Stellantis’ (STLA) Ram ProMaster without heavy investment, as it plans to phase out its aging Chevrolet Express and GMC Savana.
Automakers Brace for Rising Competition and Geopolitical Tensions
Global automakers face mounting pressure as Chinese EV makers such as BYD (BYDDY) are disrupting the industry with high-tech, low-cost models. Consequently, GM is losing ground in China, while Hyundai faces rising competition from Chinese exports. Both automakers also struggle with U.S. tariff threats, which could limit imports and drive more U.S. production.
With this collaboration, Hyundai may leverage GM to enter the U.S. commercial vehicle market, while GM could offset China losses through Hyundai ties. GM might also tap Hyundai’s platforms to expand in South America, a source suggests. The market report also suggests that both automakers might also share sales and service networks.
Is GM a Good Stock to Buy Now?
According to TipRanks, GM stock has received a Moderate Buy consensus rating based on 10 Buys, four Holds, and one Sell assigned in the last three months. The average price target for GM is $63.53, suggesting an upside potential of 28.5% from its current price.
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