General Motors (GM) and Hyundai Motor have formed an alliance to co-develop five vehicles, aiming to produce at least 800,000 vehicles annually. The collaboration comes in response to competition from low-priced Chinese automakers and seeks to bolster the companies’ market position amid rising trade costs. The planned models will include a compact SUV, a mid-size pickup, and an electric commercial van for North America, with production starting in 2028.
GM will provide expertise in mid-size truck development, while Hyundai will focus on compact vehicles and the electric van. This partnership is part of a broader trend where legacy automakers are increasingly seeking collaborations to compete against Chinese manufacturers, who have been undercutting prices and impacting profit margins.
In terms of market performance, GM shares have increased by 10.2% year to date, contrasting with a 13.7% decline in the industry overall. GM currently holds a forward price-to-sales ratio of 0.31, which is below the industry average, capturing attention as it moves towards new vehicle development to maintain competitiveness.
