Alliance accelerates production
GM and Hyundai to launch five co-developed models in the Americas by 2028 under strategic partnership
GM and Hyundai are advancing their production partnership with five co-developed models, leveraging shared manufacturing platforms and integrated supply chain planning to serve key markets in North and South America.
General Motors and Hyundai Motor Company have announced the first five vehicles to be developed under their 2024 strategic partnership, with production planned for North and South America. The automakers will use shared manufacturing platforms, integrated supply chain planning and joint sourcing to “enhance competitiveness in key markets… as well as drive cost efficiencies,” as Hyundai Motor Group’s executive chair Euisun Chung said when announcing the initial aim of the partnership in 2024.
Four vehicles are planned for Central and South American markets – a compact SUV, a car and pick-up, as well a mid-sized pick-up – and an electrical commercial van for North America. The four Latin America models will have the flexibility to use either internal combustion or hybrid propulsion systems.
GM will lead production of the mid-size truck, while Hyundai will lead on the compact vehicle and electric van.
Design and engineering are underway; with the four Latin American vehicles launching in 2028, while the electric commercial van will be manufactured in the US in early 2028.
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Localising American production
Both companies have made significant investments in their operations across the Americas this year.
In March, Hyundai committed $21 billion to its US operations, covering production increases and improvements to logistics and supply chains. In June, GM announced a $4 billion investment to expand production capabilities at its US sites, including reshoring production of certain models from Mexico and Canada.
“Hyundai’s strategic collaboration with GM will help us continue to deliver value and choice to our customers across multiple vehicle segments and markets,” said José Muñoz, president and CEO of Hyundai Motor Company. “Our combined scale in North and South America helps us to more efficiently provide our customers more of what they want – beautifully designed, high-quality, safety focused vehicles with technology they appreciate.”
The companies expect sales of the co-developed vehicles to be more than 800,000 vehicles a year once production is fully scaled.
Joint sourcing and logistics strategy
GM and Hyundai also plan joint sourcing initiatives for materials, transport and logistics, with an eye on low-carbon emissions steel as part of their commitment to sustainable manufacturing. They will continue to assess collaboration across propulsion systems, including internal combustion engines, hybrid, battery electric and hydrogen fuel cell technologies.
This flexible approach to propulsion types will require more complex inbound logistics, as components for both internal combustion and hybrid models must be sourced. Differences in weight and architecture between ICE and hybrid models could also affect finished vehicle transport from production sites.
In a statement, Shilpan Amin, senior vice president, chief procurement and supply chain officer at GM, said that partnering with Hyundai on raw material sourcing will boost cost savings and improve logistics efficiency, as well as streamline manufacturing, and accelerate new model launches.
At this year's Automotive Logistics & Supply Chain Global conference – taking place in Detroit on 23-25th September – GM's executive director of global logistics and containers, Marcio Lucon, will be discussing how supply chains need to be re-imagined to adapt to a changing landscape of uncertainty. Joining him will be other experts from GM, as well as other leading voices from across the sector from Nissan Group of Americas, DP World, BMW Manufacturing Co, Ford Motor Company, and more. There's still time to register and secure your place here.
