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

Article by Christian Andrei, 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:


Login or Create new account to add a comment!


Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016
Mini has just provided the world with a preview of its first hybrid model that employs petrol-electric power to propel its wheels. Derived from the second generation of the Mini...
by - October 20, 2016
For the second time in three years, German driver Marco Wittmann of BMW Team RMG reached the summit in the DTM Drivers’ Championship. Even though Wittmann only secured a fourth...
by - October 20, 2016
The recent motor show has given us a lot of promising vehicles to look forward to for the time being. After we caught a glimpse of the future of motoring,...
by - October 19, 2016
Almost immediately after its launch, car designers have rendered their own adaptations of the new BMW 5-Series (G30). It’s just how it goes. Most folks with very creative minds couldn’t...
by - October 19, 2016