Hyundai and GM Bet on a Greener Future: Can Their EV Vans and New Lineup Deliver Sustainability?

Image Credit: Cadillac

Hyundai Motor Company and General Motors have unveiled their first set of five co-developed vehicles, marking a significant milestone in a partnership first announced in 2024. The move signals both automakers’ shared ambition to expand global market presence, streamline production, and advance sustainability throughout the automotive supply chain.

Four of these vehicles are being designed for Central and South American markets. The lineup will feature a compact SUV, a passenger car, a compact pickup, and a mid-size pickup. Each model is being engineered with the flexibility to run on either internal combustion or hybrid systems, giving both companies versatility in meeting regional demands.

The fifth model is specifically designed for North America: a fully electric commercial van. Hyundai will lead the development of the compact vehicles and the electric van, while GM will oversee the mid-size truck platform. Although they will share core platforms, each brand will maintain distinct exterior and interior designs that reflect their unique identities.

Once production reaches full scale, Hyundai and GM expect sales of these co-developed vehicles to exceed 800,000 units annually.

“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.

Image: 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 electric van, set for production in the United States, could arrive as early as 2028. Beyond new vehicles, the collaboration also explores deeper sustainability goals. The two automakers are reviewing opportunities to co-develop low-emission steel, share sourcing strategies, and jointly manage logistics across North and South America. They are also considering joint procurement of raw materials, components, and complex systems, with the intention of building more resilient and environmentally responsible supply chains.

“By partnering together, 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.

Image Credit: Steve Fecht for General Motors. 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.”

Both companies are pursuing aggressive climate targets. Hyundai has committed to reaching net zero by 2045, with plans to sell two million electric vehicles annually by 2030. Its roadmap includes launching 21 new models, scaling up global production, expanding its hybrid lineup, advancing hydrogen mobility, and investing in extended-range EV technology.

GM, for its part, has pledged to eliminate tailpipe emissions from new light-duty vehicles by 2035 and to achieve complete carbon neutrality by 2040. The company has committed 35 billion dollars to its electrification strategy, built around the Ultium battery platform. Already, sales of Ultium-based models have risen by 40 per cent, with expectations that half of GM’s global fleet will be electric by 2030.

Design and engineering efforts for the new vehicles are well underway. The Central and South American models are scheduled for release in 2028, with the electric van’s U.S. debut expected that same year.

Looking beyond these five models, Hyundai and GM are still evaluating further opportunities for joint programs in global markets. These may include collaborations across multiple propulsion technologies, ranging from internal combustion and hybrid systems to battery-electric and hydrogen fuel cell platforms.

This partnership is not just about building cars; it's about creating a lasting legacy. It is about shaping the future of mobility, redefining global supply chains, and demonstrating that two industry giants can collaborate to push the boundaries of sustainability and innovation.