In the presence of China Environmental Protection Foundation President Qu Geping and representatives from across its value chain, Shanghai General Motors officially inaugurated its Drive to Green strategy today. The unique strategy covers three key areas: developing green products, cultivating green manufacturing systems and undertaking a green responsibility.

The green strategy is part of Shanghai GM’s support of the sustainable development of China’s automotive industry and the nation’s move toward creating an energy-efficient and environmentally friendly society.

“Addressing the environmental protection and energy security issues is essential for ensuring the automotive industry’s long-term sustainable development,” said Shanghai GM President Ding Lei.

Through technical innovation, Shanghai GM will continue to provide China’s vehicle buyers products that offer better performance, consume less fuel and generate lower emissions than their predecessors. It also will promote environmental protection across its entire value chain.

Green Products – Better Performance, Less Fuel Consumption, Lower Emissions

Green products represent a key element of the Drive to Green strategy. By leveraging GM’s global resources for energy diversification and working closely with Shanghai GM’s sister joint venture – the Pan Asia Technical Automotive Center (PATAC) – Shanghai GM will roll out green products that achieve improved performance, lower fuel consumption and lower emissions.

All vehicles manufactured by Shanghai GM in 2008 will meet China’s Phase IV emission standard, with new models being capable of meeting emission standards up to the Phase V standard. Shanghai GM will introduce four green products this year. Between 2009 and 2012, it will begin offering 11 engines that offer better fuel economy than its current engines. Shanghai GM also plans to introduce GM’s E-Flex drive system and Fuel Cell E-Flex electric drive vehicle in China after 2010 to put it on the path toward its ultimate goal of zero fuel consumption and zero emissions.

“General Motors is pleased to be sharing our advanced technology and energy diversification know-how as part of our overall support of Shanghai GM’s product planning,” said Kevin Wale, President and Managing Director of the GM China Group. “In addition to benefiting the nation’s automakers, the sustainable development of the automotive industry will enable our customers to enjoy a higher quality of life.”

The Buick LaCrosse Eco-Hybrid, which was introduced for the first time at today’s ceremony, is Shanghai GM’s initial green product in 2008. It is the first mainstream hybrid model in China’s upper-medium vehicle segment with volume production. The Buick LaCrosse Eco-Hybrid can achieve fuel economy of 8.3 liters/100 km, compared with fuel economy of 9.8 liters/100 km for the non-hybrid version.

Shanghai GM also will roll out three new engines in 2008, including the 1.2-liter S-TEC efficiency class-leading engine and HFV6 3.6-liter SIDI dual mode direct injection engine. The S-TEC engine generates 52.2 kW/l, which is the highest in its category, and achieves fuel consumption of 6 liters/100 km, which is the lowest among engines with the same displacement. The SIDI dual mode direct injection engine enhances output 15 percent and torque 8 percent compared with the previous version of the engine. In addition, there is a 3 percent improvement in fuel consumption, while hydrocarbon emissions in cold starting can be reduced by up to 25 percent.

Shanghai GM will later launch another, as yet unnamed, vehicle with an advanced two-mode hybrid system. The engine in that vehicle will get 50 percent better fuel economy than a conventional internal combustion engine without sacrificing performance.

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