The next electric pickup from General Motors
$GM (+1,81 %) could be a Hyundai
$HYUD (+0 %)
$005380 or vice versa ?!?

GM and Hyundai are working together on the introduction of an electric pickup.

GM and Hyundai signed a letter of intent in September to collaborate on the development and production of new vehicles.

According to GM CEO Mary Barra, the partnership is intended to "leverage the scale and creativity of both companies".

GM and Hyundai want to "improve their competitiveness in key markets and vehicle segments". They will use their competitive advantages to reduce costs and introduce advanced new technologies.

According to a new report by Korean media outlet Pulse, Barra met with Hyundai Chairman Euisun Chung earlier this month to discuss the partnership. According to the report, Hyundai and GM plan to collaborate on the development of a new electric pickup truck.

Interestingly, the two leading OEMs are considering "badge engineering," in which Hyundai would sell GM-produced vehicles with its branding, or vice versa.

The partnership is significant given the scale of the two auto giants. GM's Chevy Silverado was the second best-selling vehicle brand in the U.S. last year behind Ford's F-Series. The Ram pickup came in third place.

Hyundai and GM want a bigger piece of the pie, as pickups are the best-selling brands. By joining forces and complementing each other's strengths, they could reduce their costs and undercut the competition. This could also include using each other's distribution networks.