SAIC and GM agree on stronger strategic cooperation, will focus on alternative energy cars in China

As the world’s largest auto market, China is doing all its can to not depend on oil, cut pollution and offer alternative fuel vehicles. SAIC Motor Corp. and General Motors yesterday signed a non-binding memorandum of understanding  on strategic cooperation and said they plan to reinforce their current collaboration in new ares of business including the development of new energy vehicles.

The two said that they will also work on 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.

“A joint effort to develop more new energy vehicles and components is a core element of the anticipated strategic cooperation,” GM said in a statement. “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.”

The two companies said that they will also share vehicle architecture and powertrain application in an effort to help reduce development costs and benefit from economies of scale.

During the first ten months of 2010, SAIC and GM’s Shanghai GM join venture sold 843,000 vehicles in China.

– By: Omar Rana