General Motors and Hyundai Motor announce plans to develop five vehicles together, including compact SUVs, cars, and pickups in Central and South America by 2028. The partnership aims to produce at least 800,000 vehicles annually, targeting Chinese EV competition in Latin America. Some analysts question the effectiveness of the plan.

The two automakers will also collaborate on an electric commercial van in the United States by 2028. The partnership is seen as a win-win, with GM benefiting from Hyundai’s hybrid technology and Hyundai using the relationship with GM for trade negotiations with the U.S. A trade agreement last week imposed a 15% tariff on U.S. imports from South Korea, including vehicles.

Hyundai Motor’s shares rose 0.7% following the announcement of the partnership with GM. This collaboration marks Hyundai’s first major partnership for vehicle development. The move comes as legacy automakers like GM face pressure from Chinese rivals in the electric vehicle market, prompting them to seek cost-saving partnerships.

Read more at Yahoo Finance: General Motors, Hyundai to develop vehicles together amid China EV competition