Hyundai Motor in Talks to Supply Electric Vehicles to General Motors
Hyundai Motor, the world’s third-largest automaker by sales, has announced that it is in discussions with General Motors to supply commercial electric vehicles (EVs) to its US peer. The deal, which is expected to pave the way for Hyundai’s entry into the North American commercial vehicle market, comes as automakers face uncertainty due to potential policy changes in the US and other major markets.
Hyundai’s Chief Financial Officer, Lee Seung Jo, stated that the company is considering rebadging its commercial EVs and supplying them to GM. The talks are ongoing, and the company aims to sign binding contracts on cooperation in parts procurement and passenger and commercial vehicles within the first quarter of this year.
The move comes as Hyundai expects sales growth to halve this year due to softening demand. The company has also flagged policy risk in the US, citing the uncertainty surrounding import tariffs and the potential impact on demand. However, Hyundai believes that it will suffer less impact from US tariffs than Japanese rivals such as Toyota and Honda, which have a bigger manufacturing presence in Mexico and Canada.
Hyundai plans to further localize production in the US to minimize any tariff impact and has announced plans to make hybrid vehicles at its new factory in Georgia. The company has also reported a slowdown in major markets, slowing EV demand, and macroeconomic volatility as major concerns.
In its earnings report for October-December, Hyundai reported operating profit of 2.8 trillion won ($1.95 billion), lower than the 3.2 trillion won average of 24 analyst estimates compiled by LSEG SmartEstimate. The company’s global retail sales slipped during the quarter due to sluggish demand in South Korea, Europe, and China, offset by solid sales in the US and India.
Hyundai has also announced that it is considering supplying its Ioniq 5 EVs to robotaxi developer Waymo in North America and beyond. The company aims to commercialize robotaxis next year and is developing autonomous technology at its Motional unit.
