GM and SAIC expanding their partnership to develop small engine family and transmission

Article by Christian A., on August 27, 2010

General Motors Co. and SAIC Motor Corp. further expands their 13-year partnership by agreeing to jointly develop small engines and transmissions. Last December, these two companies had agreed to set up a joint venture in India to produce small cars and commercial vehicles.

This latest deal leads the way for GM to cope with the demand for small city cars in growing markets and reduce the costs of developing fuel-saving technologies for the US market, where it will have to comply with the new fuel economy standards by 2016.

Analysts said that potential investors will be considering how it manages a strategy for sustained growth in the Chinese auto market. 

GM is expected to announce plans for a public offering of stock in a filing with securities regulators as early as Wednesday that will enable the Obama administration to lower its 61% stake in the automaker. Industry observers said that this IPO reveals another chance for GM and SAIC to have closer ties.

Sheng Ye, associate research director at industry consultancy Ipsos' Greater China region, said that the GM-SAIC partnership is "the most successful one" in China's auto industry.

He believes that it's highly likely that SAIC will take a stake in GM. At the sidelines of a news conference, SAIC Chairman Hu Maoyuan was asked about this possibility. He declined to comment about the company's possible participation in GM's IPO, explaining that it has yet to study the details of the IPO.

Topics: gm, partnership, saic

If you liked the article, share on:

Pin It

Comments

Recommended

South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Last year was probably Porsche’s best year ever in terms of sales. Their factory in Stuttgart delivered 237,778 cars in total, which represents a six percent increase compared to the...
by - March 26, 2017
Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries