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:

Comments

Recommended

If you are a huge fan of the hardcore GTS version, you probably know that the closest you could get to that model is the upgraded model of the M4...
by - July 23, 2017
Audi’s intention to bring out the Renn Sport Racing version of the Q5 was made clear when it unveiled the Audi SQ5 at the 2017 Detroit Motor Show early this...
by - July 22, 2017
Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
The Lotus Evora Sport 410 astonished the world after arriving as the more powerful and lighter edition of the already impressive Evora 400. Now, Lotus Cars is throwing in another...
by - July 22, 2017
The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 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