(Reuters) -General Motors ( GM ) and Hyundai Motor ( HYMLF ) announced on Wednesday their first agreement to jointly develop five vehicles.

Four of the vehicles - a compact SUV, a car, a pickup, and a mid-size pickup - are targeted at Central and South American markets and will support both internal combustion and hybrid powertrains.

The two global automakers will also co-develop an electric commercial van for the North American markets.

Reuters in March reported that the two automakers were nearing a deal to share two commercial electric vans.

Global automakers face stiff competition from Chinese EV makers and a trade war impacting imports of crucial parts, including rare earth materials, which has pushed production costs higher.

Chinese automakers have put out several high-tech, low-cost models, affecting demand for EVs from legacy automakers including GM.

Hyundai's presence in China - the world's largest auto market - is minimal but it faces growing pressure from Chinese auto exports globally.

The Korean automaker is leaning on its U.S. sales while its China sales decline. Unlike GM, Hyundai has little presence in the lucrative U.S. commercial vehicle and truck market.

Collaborating with Hyundai on vans could help GM reduce development costs on those models, especially considering its decades-old Chevrolet Express and GMC Savana vehicles.

At full production scale, the companies expect to roll out up to 800,000 vehicles annually.