General Motors, SAIC sign electric vehicle co-development deal for China

General Motors and its Chinese joint venture partner Shanghai Automotive Industries Corp. (SAIC) signed an agreement calling for the two automakers to co-develop and manufacture electric vehicles in China, the world's largest automotive market.

This deal will allow The General and SAIC to eventually offer electric vehicles that qualify for China's substantial alternative fuel subsidies, something the Chevrolet Volt doesn't qualify for since it's not built in China. The Volt will launch in China in late 2011, but without the subsidies it will be one pricey plug-in.

The Pan Asia Technical Automotive Center (PATAC) – SAIC and GM's engineering and design joint venture in Shanghai – will serve as the development site for the electric vehicle architecture that will underpin future battery-powered automobiles sold in China. Under the agreement, teams of SAIC, GM and PATAC engineers will work hand-in-hand to develop key components, vehicle structures and architectures for upcoming vehicles to be sold under Shanghai GM and SAIC brands.

This deal builds upon the signing of an alternative energy vehicle MOU by GM and SAIC back in November 2010. Perhaps the most important bit of info stemming from this agreement is that General Motors will be able to use the co-developed components and architecture to build electric vehicles to sell around the globe.
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Shanghai – SAIC Motor Corp., Ltd. (SAIC) Chairman Hu Maoyuan and General Motors Co. (GM) Chairman and CEO Dan Akerson signed an agreement today in Shanghai for the co-development of a new electric vehicle architecture in China.

The Pan Asia Technical Automotive Center (PATAC) – SAIC and GM's engineering and design joint venture in Shanghai – will serve as the development center for the architecture. Joint teams from the parent companies will also cooperate on the development of key components and vehicle structures.

The agreement will leverage SAIC's market knowledge and local expertise along with GM's expertise in electric vehicle development and global know-how. It will ensure local input in the development of electric vehicle technology and the delivery of products developed 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. This unprecedented level of cooperation is another demonstration of our companies' commitment to work collaboratively."

According to Chen Hong, president of SAIC Motor, "Our agreement will enable SAIC and GM to take advantage of economies of scale and get new technology to the market faster than by going it alone. It will help bring about our goal of leading the automotive industry in new energy vehicles and our vision of sustainable transportation, which we introduced at World Expo 2010 Shanghai."

The electric vehicle architecture will be the first to be co-developed by the two companies. Their Shanghai GM joint venture introduced the Sail electric concept vehicle late last year. Establishing PATAC as the engineering lead for the electric vehicle architecture demonstrates not just the strength of the GM-SAIC partnership, but also the confidence and trust the companies have in one another to accomplish an aggressive and challenging project.

Under the agreement, teams of SAIC, GM and PATAC engineers will work together to develop key components, as well as vehicle structures and architectures. Vehicles resulting from the partnership will be sold in China under Shanghai GM and SAIC brands. SAIC and GM will also use the architecture to build electric vehicles around the globe for their own purposes. Product details and timing will be announced at a later date.

Accelerating the introduction of roadworthy technologies such as this future electric vehicle architecture is more important than ever, following the announcement of a number of more stringent emission and fuel consumption regulations around the world, including China.

Today's agreement is a follow-up to the non-binding memorandum of understanding (MoU) on strategic cooperation signed by SAIC and GM on Nov. 3, 2010. The two automakers had pledged to reinforce their collaboration in certain core areas of their business, including the development of new energy vehicles and the creation of a stronger and more integrated role for PATAC to work on future vehicles and powertrains. GM and SAIC are making an equal investment in the project.

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. The companies' manufacturing joint ventures, Shanghai GM and SAIC-GM-Wuling, are market leaders in China. In addition, SAIC and GM operate a joint venture in India and SAIC is an investor in GM Korea Co.

About General Motors:

General Motors, one of the world's largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 208,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 30 countries, and sell and service these vehicles through the following brands: Baojun, Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling. GM's largest national market is China, followed by the United States, Brazil, the United Kingdom, Germany, Canada and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on the new General Motors can be found at

About SAIC:

SAIC Motor Corp., Ltd. (SAIC) is the largest vehicle manufacturer listed on China's A-share market. In 2010, it sold 3.58 million vehicles, remaining the leader among major automotive groups in China. It is primarily engaged in manufacturing, sales, development and investment in passenger vehicles, commercial vehicles, and automotive parts and components. It is also engaged in automotive trade and financial services. SAIC operates several vehicle manufacturing joint ventures, including Shanghai Volkswagen, Shanghai GM, Shanghai Sunwin, SAIC-GM-Wuling, Nanjing IVECO and SAIC-IVECO Hongyan. Its wholly owned brands include Roewe, MG and MAXUS Datong. During Expo 2010, SAIC provided more than 1,000 hybrid electric vehicles, battery electric vehicles, fuel cell vehicles and other advanced technology vehicles, contributing to an environmentally friendly and low-carbon global event.

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