Hyundai and General Motors strengthen their alliance

Between now and March, the aim is to sign cooperation contracts for cars and commercial vehicles.

Photo by: Hyundai

By: Eleonora Lilli

Jan 25, 2025 at 4:17am ET

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Hyundai Motor is in talks with General Motors to strengthen the cooperation agreement that has been in place since last year. By March 2025, the two companies hope to sign cooperation contracts for the purchase of components and vehicles for both passenger cars and commercial vehicles.

"The agreement will pave the way for our entry into the North American commercial vehicle market," explained Lee Seung Jo, Hyundai's CFO, during a financial results conference call reported by Reuters.

An uncertain political scenario

The talks between Hyundai and GM are taking place against a backdrop of political uncertainty in the United States, the world's second-largest car market after China, which could impose import taxes on Canada and Mexico from February.

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Hyundai said it was aware of the political risks in the US with President Donald Trump taking office and promising tariffs on imports, but said any negative impact would be greater for Japanese rivals (such as Toyota and Honda).

Close ties with the United States

"We expect more trade uncertainties this year than ever before due to potential political changes not only in the domestic market, but also in the US, while in Europe there will be stricter emissions regulations," said Hyundai's CFO, who plans to further localise production in the US, in Georgia, to circumvent potential tariffs.

Closer cooperation with GM is a step in this direction, as is the fact that Hyundai plans to supply the Ioniq 5 to Waymo to market robot taxis in North America from next year.