Could GM’s (GM) New Vehicle Partnerships Reveal a Shift in the Company’s Global Strategy?

• Hyundai Motor Company and General Motors recently unveiled plans to co-develop five new vehicles, including four combustion or hybrid vehicles for Central and South America and a US-built electric van, marking a new phase in their partnership.
• Noveon Magnetics announced a multi-year supply agreement with General Motors to provide rare earth magnets, enhancing GM's domestic supply chain for electric and gasoline vehicle production in the United States.
• We'll explore how this collaboration with Hyundai on global vehicle development could reshape General Motors' investment outlook.

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General Motors Investment Narrative Recap

For shareholders in General Motors, the big picture centers on believing in the company’s ability to expand its global reach and capitalize on vehicle electrification while managing cost pressures and fierce competition. While the recent Hyundai partnership expands GM’s potential market access and diversification, it is unlikely to materially shift the most pressing short-term catalyst, improved EV profitability, or the key risk, which remains high tariffs and ongoing trade policy uncertainty with major partners.

Among recent developments, the Hyundai collaboration stands out for its scale and ambition: five new co-developed vehicles, with four targeting Central and South America and a US-built electric van. Although this alliance enhances GM’s international growth positioning and joint sourcing potential, the primary near-term catalyst for the stock continues to be faster traction and profitability in its EV lineup.

However, despite these expansion plans, investors still need to consider the impact that unpredictable tariffs and trade negotiations could have on GM’s bottom line and future growth...

Read the full narrative on General Motors (it's free!)

General Motors is forecast to achieve $184.7 billion in revenue and $8.2 billion in earnings by 2028. This scenario assumes a 0.5% annual decline in revenue and a $1.7 billion increase in earnings from the current level of $6.5 billion.

Uncover how General Motors' forecasts yield a $57.10 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided 10 fair value estimates for GM ranging from US$38.81 to US$117.80 per share. While viewpoints are wide, the unresolved tariff headwind remains a critical factor shaping broader expectations for GM’s earnings and market share, consider how your outlook aligns with these alternatives.

Explore 10 other fair value estimates on General Motors - why the stock might be worth over 2x more than the current price!

Build Your Own General Motors Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your General Motors research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free General Motors research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate General Motors' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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