In the presence of Chinese National People's Congress Chairman Wu Bangguo and Chinese Vice Minister of Commerce Ma Xiuhong, representatives from GM and Shanghai GM formalized an agreement for the purchase of complete vehicles, vehicle kits, machinery and equipment by the GM joint venture from its parent company. Buick, Chevrolet and Cadillac vehicles are part of the deal.
The agreement, which is valued at $607 million, was signed in Phoenix, Arizona, during the visit of a senior Chinese trade delegation to the United States.
This agreement is a strong sign of GM’s long-term commitment to our flagship joint venture in China. Shanghai GM has become successful by leveraging the best global resources of its parent companies. As we are demonstrating today, we will continue to support its growth as a leader in GM’s second-largest global market.—Kevin Wale, President and Managing Director of the GM China Group
Shanghai GM is a 50-50 joint venture between GM and Shanghai Automotive Industry Corp. Group (SAIC). It is one of eight joint ventures operated by the partners. Formed in 1997, Shanghai GM builds, imports and sells more than 20 different models under the Buick, Chevrolet, Cadillac and Saab brands. It sold 445,709 vehicles in China in 2008. Through the end of August, Shanghai GM had sold 63,303 units in China this year, representing a year-on-year increase of 99.6%.