China's largest automobile company, Shanghai Automotive Industry Corporation (SAIC), recently joined forces with the American multinational car company General Motors, with an official agreement being signed between the two automobile giants, on 20th September 2011. The joint venture will aim at developing the highly potential electric car market, and catering to the needs of the same, in China.
The financial plans regarding this joint venture have not been divulged as yet, however, both companies are expected to invest equally. According to the agreement, a global development unit will be set up in Shanghai, bearing the name, Pan Asia Technical Automotive Centre. This unit will serve as an engineering and design centre for both the companies.
It is important to note that this cooperation will comprise varied areas of expertise from both sides. Shanghai Automotive Industry Corporation possesses deep knowledge about the local market, which will be combined with General Motors' know how regarding electric vehicle development and global market. As a result, the companies would ensure the use of local input in vehicle technology and distribution of this vehicle across China.
In addition, both the camps would be sharing their expertise on key parts development and vehicle design and structure. The vehicle will make its debut in China, and later the electric car will be introduced worldwide. Shanghai Automotive Industry Corporation President, Chen Hong stated that “Our agreement will enable SAIC and GM to take advantage of economies of scale and get new technology to the market faster than by going with it alone.” He further mentioned that “It will help bring about our goal of leading the automotive industry in new-energy vehicles.”
General Motors International Operations President Tim Lee said that “the development of this electric vehicle architecture demonstrates the broad range of benefits made possible by the strong partnership between SAIC and General Motors.”
Thus, car makers are leaving no stone unturned, in order to carve a niche in the electric car segment that represents the future of car technology.
