Hyundai Motor (OTC:HYMLF) announced plans to sign binding deals with General Motors (GM) for joint procurement of vehicle parts and expanded cooperation in the commercial and passenger vehicle business.
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Hyundai Plans to Supply EVs to North America
Hyundai is in talks to supply commercial electric vehicles (EVs) to GM, paving the way for its entry into the North American commercial vehicle market. The company’s CFO Lee Seung Jo highlighted the potential benefits, stating, “We are considering re-badging our commercial EVs and supplying GM… The deal will pave the way for our entry into the North American commercial vehicle market.”
Hyundai’s sales are slowing down as it has forecasted its FY25 revenues to grow in the range of 3% to 4%. Additionally, the company flagged risks from U.S. import tariff policies under President Donald Trump, although it expects Japanese automakers to face greater challenges.
As a result, following a preliminary agreement signed last year, Hyundai plans to finalize binding contracts with GM by the end of the first quarter. These agreements will focus on parts procurement and collaboration in passenger and commercial vehicles.
What Is the GM Target Price?
Analysts remain cautiously optimistic about GM stock, with a Moderate Buy consensus rating based on eight Buys, five Holds, and two Sells. Over the past year, GM has increased by more than 50%, and the average GM price target of $58.60 implies an upside potential of 9.8% from current levels.
