GM raises the white flag – it’s next 5 vehicles will be designed and engineered by Hyundai

Photo above - GM is partnering with Hyundai to counter Ford's brilliant "Open, Safe, and Sanitized down by the river" marketing campaign.

Is this a “sell-sell sell” signal, Jim Cramer? GM is pivoting to Hyundai for at least 5 of its new vehicles. The only things we are sure will still be 100% General Motors are the full-sized pickup trucks. (see link below)

Sticking to gas guzzling pickups means GM will still build a LOT of vehicles. For the GMC Sierra alone we will be able to choose from trims called “Pro” (base), SLE, SLT, Elevation, AT4, AT4X, Denali, and Denali Ultimate. They have towing capacities from 9,500 pounds to 36,000 pounds. Engines range from a 300 hp gas 4 cylinder to a massive 6.6 liter diesel. There are EV and hybrid options in the mix too. Choose between 2 doors, extended cabs, 4 doors, and crew cabs. Various bed lengths from 5.8 feet to 8.2 feet.

No wonder GM gave up on cars. They are probably challenged by just keeping 50 million spare parts in stock for the pickup variations they already build. Sorry, no cars will be available until further notice.

Hyundai dominates the non-Tesla American EV market. They also sell midsize pickups, all sizes of SUVs, hybrids, gasoline econoboxes, and somewhat matching lineups under their captive “Kia” and "Genesis" badges. There are over 2,500 Hyundai, Kia and Genesis showrooms open for business in America right now (Full disclosure – my mom drives a 2025 Kia K4. She loves it. More interior room than a Camry, $5,000 less, and a 100,000 mile powertrain warranty.)

I doubt if Chevy will offer 100,000 mile warranties on the rebadged vehicles they get from Hyundai. Which begs the question – why would I even go into a Chevy showroom to buy one? Aren't we likely to pay more and get less? But I might possibly meet my eccentric bachelor uncle there, who has been a Chevy salesman for 12 years. He wouldn't take advantage of me, right?

At this point someone is shouting “What about Honda and Toyota? What about those GM partnerships?” General Motors' press release is mum on this. GM is currently selling Blazer EVs to Honda which are immediately be rebadged as “Prologues”. It's not going as bad as you might think. 2024 and 2025 Prologue sales were both over 30,000 vehicles. But I doubt if Honda salespeople are beginning their spiel with “this beauty is made by Chevrolet”.

GM used to have a joint factory with Toyota in California. Corollas and Tercels were rebadged as low-end Chevys. That stopped a while ago.

So is General Motors stock a buy or a sell, Mr. Cramer? Please explain your reasoning. GM just took a $1.6 billion write-down on its self inflicted EV misadventure. But shares are trading at $74, up from $42 a year ago. Does kowtowing to Hyundai help or hurt them at this stage?

I’m just askin’ . . .



GM and Hyundai announce plans for first five co-developed vehicles | General Motors

https://investor.gm.com/news-releases/news-release-details/gm-and-hyundai-announce-plans-first-five-co-developed-vehicles/