STORY: General Motors and Hyundai are joining forces to battle mounting competition from Chinese rivals.
The pair said Wednesday (August 6) that they would develop five vehicles together.
Four will be targeted at markets in Central and South America, where Chinese brands have been gaining ground.
The other one will be an electric van for the North American market.
For GM, the deal offers access to hybrid technology that it has lacked.
For South Korean Hyundai, it’s a first-ever partnership on vehicle development and offers a way into new markets, including American vans.
The two companies didn’t say where the models will be made.
Hyundai already has a factory in Alabama and has promised to ramp up output at another plant in Georgia.
It also has a factory in Brazil that could be used.
The tie-up comes as Chinese brands release a slew of low-priced, high-tech models, pressuring legacy names like GM to cut costs in return.
Donald Trump’s sweeping global tariffs have also added billions in costs, increasing pressure to take action.
South Korea last week agreed to a 15% levy on its exports to the U.S. as part of a deal with Washington.
