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Hyundai, GM in talks amid sales slump and tariff concerns

A strategic partnership with General Motors will assist Hyundai in navigating the growing challenges posed by political uncertainties in the U.S. and its home country, South Korea.

On Thursday, South Korean automaker Hyundai announced it is in talks with General Motors to establish a partnership in which it will supply the U.S. automaker with commercial EVs. The proposed deal comes at a time when consumer demand is softening, and Hyundai has projected its sales growth to halve this year. The partnership could provide the automaker with a critical foothold in the North American commercial vehicle market.

Hyundai, alongside its sister brand Kia, currently holds the position as the world’s third-largest automaker by sales. Despite this, the company has adjusted its forecast, predicting a revenue growth of just 3%-4% for 2025, a significant decline from the 7.7% growth it experienced last year. Consumer sentiment has been further tested in South Korea following President Yoon Suk Yeol’s declaration of martial law in December, which sparked widespread public discontent and increased economic uncertainty.

Meanwhile, the political landscape in the United States, the second-largest automotive market globally, adds another layer of unpredictability. President Donald Trump’s recent threats to impose a 25% tariff on Canada and Mexico, along with the possibility of blanket tariffs on other imported goods, have created an atmosphere of tension and potential market disruption. For Hyundai, securing a partnership with General Motors could serve as a crucial strategy to mitigate these uncertainties and strengthen its position in the region.

Last fall, Hyundai and GM signed a non-binding memorandum of understanding (MoU), marking the initial step toward collaboration. Hyundai now aims to finalize this agreement within the first quarter of the year. A successful partnership with GM would not only boost Hyundai’s credibility but also provide an effective channel for entering the highly competitive North American commercial vehicle market.

In preparation for the anticipated challenges posed by new tariffs, Hyundai has laid out plans to increase its manufacturing presence within the United States. The company intends to focus on localizing production, including the assembly of hybrid vehicles at its state-of-the-art plant in Georgia. These efforts aim to reduce the potential financial impact of tariff enforcement and align with Hyundai’s long-term strategy of expanding its market share in North America.

With this partnership on the horizon and proactive steps to address evolving market dynamics, Hyundai is positioning itself to navigate a year filled with challenges and opportunities.

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Jasmine Daniel
Jasmine Daniel
Jasmine Daniel is a staff writer and reporter for CBT News. She holds a BFA in Writing from the Savannah College of Art & Design and has over eight years of experience in SEO, digital marketing, and strategic communication. Her storytelling skills bring breaking news to life, delivering timely, impactful stories that resonate with readers.

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