GM and Hyundai Join Forces to Counter Chinese Rivals

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GM and Hyundai Join Forces to Counter Chinese Rivals

When two major manufacturers decide to join forces, it is never a casual whim. General Motors and Hyundai Motor have taken a step that can only be described as a carefully calculated manoeuvre in the global automotive battle. They have announced the joint development and production of five entirely new models, aimed squarely at prying open markets in Central and South America.

Four of these newcomers target the mass market: a compact SUV, a passenger car, a full-size pickup and a mid-size pickup. All will be offered with petrol engines or hybrid drivetrains tailored to local tastes. Production is scheduled to begin in 2028, with full capacity expected to reach at least 800,000 vehicles annually.

The plan does not end there. The partnership will also produce an electric van for the United States market, with manufacturing likewise slated for a 2028 launch.

Looming in the background is the pressure from Chinese automakers, whose inexpensive yet technologically advanced electric vehicles have disrupted markets worldwide. Many analysts say this has pushed traditional players to seek unexpected alliances. Yet sceptics question whether this fresh pairing can quickly break Chinese dominance in South America, where buyers have already grown accustomed to affordable EVs.

For GM, the move is especially telling, coming just a year after it scrapped a partnership with Honda that was set to deliver $5 billion worth of budget electric cars. Now a new game plan is on the table — and the outcome will hinge on whether the combined force of these two automotive giants can truly shift the front lines in the battle against China.