Why are Hyundai and GM Working Together on Electric Van?

Hyundai Motor Company and General Motors (GM) have revealed their progressive plans involving five co-developed vehicles.

Central to these plans is an electric commercial van, reflecting the duo's commitment to advancing sustainable manufacturing and meeting ambitious market goals in their strategic 2024 collaboration.

Both automotive giants share a vision of extending their market footprint, optimising production techniques and embedding sustainability into their global supply chains.

Electric van and vehicle portfolio

By producing the five models, Hyundai and GM intend to address different market dynamics.

Four models are earmarked for the Central and South American markets, featuring a blend of a compact SUV, a traditional car, alongside compact and mid-size pick-ups that can operate either via internal combustion or through hybrid propulsion systems.

However, attention in North America will shift towards launching their co-developed electric commercial van.

The division of labour in this collaboration sees Hyundai spearheading the compact vehicles and electric van development, while GM channels its focus towards creating the mid-size truck platforms.

Despite sharing platforms, each company will distinctly design its vehicles’ interiors and exteriors to align with their respective brand aesthetics.

They anticipate achieving annual sales of 800,000 units across these shared ventures.

“Hyundai’s strategic collaboration with GM will help us continue to deliver value and choice to our customers across multiple vehicle segments and markets,” says 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.”

Sustainable manufacturing and innovation

Scheduled for production in the US by 2028, the electric commercial van symbolises the alliance’s commitment to sustainability.

But the collaboration is not confined to product development.

Hyundai and GM pledge to explore solutions around low-carbon steel and engage in cooperative sourcing ventures.

These ventures embrace shared initiatives concerning materials and transport logistics across American markets.

“By partnering, GM and Hyundai will bring more choice to our customers faster and at lower cost,” says Shilpan Amin, GM Senior VP and Global Chief Procurement and Supply Chain Officer.

“These first co-developed vehicles clearly demonstrate how GM and Hyundai will leverage our complementary strengths and combined scale.”

Proactively, the duo evaluates additional avenues, spanning raw materials, components and intricate systems that bolster operational efficiency and sustainability.

Future-oriented goals

Focusing on a cleaner future, Hyundai and GM are strategically reducing emissions, accelerating electrification and pursuing broader sustainability goals.

Hyundai targets achieving net zero by 2045, aspiring to produce two million electric vehicles yearly by 2030, underpinned by plans to launch 21 new models globally.

Hyundai also diversifies into expanding hybrid vehicles and innovating long-range EVs alongside hydrogen mobility.

Meanwhile, GM dedicates efforts to curbing tailpipe emissions in new light-duty vehicles by 2035 and achieving carbon neutrality by 2040.

Supported by a US$35bn investment in its Ultium battery platform, GM foresees half its fleet as electric vehicles by 2030.

The rising demand has resulted in a 40% sales increase of Ultium-based models.

Design and engineering are in full swing, preparing the vehicle line-up for Central and South America, with an anticipated release in 2028.

The electric van production in the US aligns with this timeline. Following a framework agreement signed in September 2024, Hyundai and GM continuously explore extended joint programmes across global markets.

Their exploration covers propulsion systems encompassing internal combustion engines, hybrids, battery-electric and hydrogen fuel-cell technologies.