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SAIC and GM Announce Expansion of Cooperation in Asia
2009-12-06
Shanghai – Shanghai Automotive Industry Corporation Group (SAIC) and General Motors Company announced today that the two automakers are expanding their cooperation in Asia.
SAIC and GM, which currently operate eight joint ventures in China, have formed a new 50-50 joint venture investment company, General Motors SAIC Investment Limited. Situated in Hong Kong, it will facilitate their expansion efforts. They also announced plans to leverage their resources to support expansion in emerging markets, beginning with India.
Based on the automotive industry’s long-term potential for growth in India, SAIC and GM have formulated a joint strategy for investment in the country. They will utilize GM’s two vehicle manufacturing facilities and a powertrain facility in India and GM’s nationwide distribution network in the formation of a new joint venture.
Small cars from Shanghai GM and mini-commercial vehicles from SAIC-GM-Wuling, SAIC and GM’s manufacturing joint ventures in China, will be produced and sold in India. These products will join GM’s global vehicles, allowing GM India to quickly add entries in growing market segments. The establishment of the India joint venture is expected to be finalized in the first quarter of 2010. GM believes the additional models and potential volume growth will result in the creation of more jobs in India.
“Changes in the worldwide economy have created new opportunities in emerging markets,” according to Hu Maoyuan, Chairman of SAIC. “By leveraging our individual assets and those of our China joint ventures, SAIC and GM are in a strong position to introduce competitive products outside China that will satisfy the needs of consumers in India and other high-potential global markets.”
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