GM and Shanghai Auto to co-develop new EV
General Motors and the Shanghai Automotive Industry Corporation (SAIC) have reached a deal to develop a new electric vehicle in China.
The deal was signed in Shanghai only days after two US senators raised concerns about Chinese subsides of up to USD19,000 for electric vehicles built in China.
"The co-development of this new electric vehicle architecture demonstrates the broad range of benefits made possible by the strong partnership between SAIC and GM," said Tim Lee, president of GM International Operations. "For almost 15 years, our two companies have forged some of the industry's most successful joint ventures.”
The Pan Asia Technical Automotive Center — SAIC and GM's engineering and design joint venture in Shanghai — will also act as the development centre for the project, although GM has no plans to transfer technology on the building of the Chevrolet Volt, its domestic EV.
According to GM, it plans to invest between USD5 billion and USD7 billion in China over the next five years and the new agreement intends to leverage SAIC's market knowledge and local expertise along with GM's expertise in electric vehicle development to boost market share.
The electric vehicle architecture will be the first to be co-developed by the two companies.
SAIC and GM are partners in 10 joint ventures in China, which are engaged in vehicle and powertrain manufacturing, sales and aftersales, automotive engineering and design, automotive finance and telematics, and the sale of used vehicles.