SAIC and GM sign memorandum of understanding for long-term strategic cooperation; development of new energy vehicles a core element
03 November 2010
SAIC Motor Corp., Ltd. (SAIC) and General Motors Co. (GM) signed a non-binding memorandum of understanding (MoU) on strategic cooperation. The two companies jointly announced that they are planning 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 their Pan Asia Technical Automotive Center (PATAC) automotive engineering and design joint venture to work on future vehicles and powertrains.
The signing of the MoU builds on the automakers’ efforts to explore cooperation in Asia’s emerging markets, led by India (earlier post), and to co-develop two efficient next-generation powertrain families. It represents an extension of SAIC and GM’s plans to build a closer strategic alliance.
A joint effort to develop more new energy vehicles and components is a core element of the anticipated strategic cooperation. It could include the co-development of key components, leveraging best solutions from either party, the development of a next-generation electric vehicle architecture for China and the acceleration of electric vehicle technical capability in the companies’ China operations.
In addition to a focus on new energy vehicles, SAIC and GM anticipate sharing an additional vehicle architecture and powertrain application in an effort to help reduce development costs and benefit from economies of scale. They also plan to further enhance the vehicle and powertrain capabilities of PATAC, while jointly training local R&D staff. This will allow both partners to capitalize on new development opportunities in emerging markets.
In the first ten months of 2010, SAIC and GM’s Shanghai GM (SGM) joint venture sold about 843,000 vehicles in China. SAIC-GM-Wuling (SGMW) has been the largest mini-vehicle manufacturer in China for four consecutive years. Last year, SGMW became China’s first vehicle manufacturer to top 1 million units of sales and production. It has already reached this mark in 2010.
SAIC and GM also joined together as the global automobile partner of World Expo 2010 Shanghai. At the SAIC-GM Pavilion, they showcased their vision of sustainable urban transportation in the year 2030 under the theme of “Drive to 2030.”
The new MoU will reinforce the two automakers’ ongoing collaboration following Expo 2010. The areas covered by the MoU are subject to the negotiation of definitive agreements.
This could become a very profitable JV for both firms. Why reinvent the wheel more times than necessary. Common R & D and sharing parts and technologies could reduce production cost and make their products more competitive. Many others will do (or are already doing) the same.
Posted by: HarveyD | 03 November 2010 at 07:34 AM
New energy technology will be parceled out to China dependent on their improving human rights. The reason the Nobel Committee awarded the coveted 2010 Peace Prize to Liu Xiaobo - jailed dissident, is to confirm to the world that China's human rights record is despicable.
The whole world is watching China. Release your prisoners of conscience and honor your written agreements on human rights.
Posted by: Reel$$ | 05 November 2010 at 01:14 PM