SEOUL, February 21 (AJP) - Hyundai Motor Group and General Motors are preparing to announce a comprehensive supply chain alliance as early as next month, industry sources said Friday.
The agreement would allow both companies to share global production facilities and potentially mitigate the impact of a proposed 25 percent U.S. auto tariff under the Trump administration.
Under the partnership, Hyundai Motor and Kia Corp. would manufacture vehicles at GM’s 11 U.S. facilities using Complete Knock Down (CKD) assembly, while GM would utilize Hyundai’s factories to re-enter European and Indian markets it previously exited.
The alliance builds on a memorandum of understanding signed last September in New York between Hyundai Motor Group Chairman Chung Eui-sun and GM CEO Mary Barra.
The agreement outlines cooperation in passenger and commercial vehicles, internal combustion engines, eco-friendly energy, and the development of electric and hydrogen technologies.
The collaboration comes as legacy automakers face increasing competition from Chinese manufacturers, which accounted for 21 percent of the global market last year and are projected to reach 33 percent by 2030. Chinese brands are expanding beyond ASEAN markets into India and Europe, bringing advanced autonomous driving and electric vehicle technologies.
“The cooperation will enhance competitiveness in key global markets,” Chung said at the signing of the MOU, while Barra emphasized “systematic resource allocation.”
The partnership is expected to expand both companies’ global manufacturing footprint, with Hyundai’s facilities in the U.S., Mexico, China, Czech Republic, Slovakia, India, Turkey, Vietnam, Indonesia, Thailand, and Brazil complementing GM’s operations in Canada, Mexico, and Egypt.
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