(Reuters) .- General Motors, and Hyundai Motor announced their first agreement to jointly develop five vehicles.
Four of the vehicles – a compact SUV, a car, a truck and a medium truck – are aimed at the markets of Central and South America and will admit both internal combustion trains and hybrids.
The two global car manufacturers will also jointly develop an electric commercial truck for the North America markets.
Reuters reported in March that the two automakers were close to reaching an agreement to share two electric commercial trucks.
Global automobile manufacturers face strong competition from Chinese manufacturers of electric vehicles and a commercial war that affects imports of crucial parts, including rare earth materials, which has raised production costs.
Chinese manufacturers have launched several high -tech and low cost models, which has affected the demand for electric vehicles of traditional manufacturers, including GM.
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The presence of Hyundai in China – the largest automotive market in the world – is minimal, but faces increasing pressure by Chinese automotive exports worldwide.
The Korean manufacturer relies on its sales in the United States while its sales in China decrease. Unlike GM, Hyundai has little presence in the lucrative US market for commercial vehicles and trucks.
Collaborating with Hyundai in trucks could help GM to reduce the development costs of these models, especially considering their Chevrolet Express and GMC Savana vehicles, which have decades of seniority.
On full production scale, companies expect to launch up to 800,000 vehicles annually.
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