Detroit automaker, General Motors, and Chinese company, Shanghai Automotive Industry Corporation (SAIC), started working together a few years ago when GM began building a $250 million facility in China to develop alternative fuels. This loose partnership filled with many projects has provided GM with a lot of monetary benefits throughout these past few years and it seems the benefits will keep on rolling on as these two companies have started another project together. Their newest venture will be the co-developing of a few small engines and advanced transmissions.
The engines will range from 1.0 to 1.5-liter and they will use direct injection and turbocharging technology. They hope that these motors will produce decent power while returning great fuel economy. They will be used in front-wheel drive cars and will be connected to a dry dual-clutch automatic transmission that the two will also be working on.
The products will be developed here in the United States in Michigan and at the joint venture Pan Asia Technical Automotive Center in Shanghai. After development, the engines and transmission will be used in cars throughout the world.
"The GM-SAIC partnership is the most successful one in China’s auto industry. There is a big chance that SAIC may take a stake in GM and bring their relationship to the next level," said Sheng Ye, associate research director at industry consultancy Ipsos’ Greater China region to Rueters.
How’s this for a sign of increasing global presence? General Motors has just announced that for the first half of 2010, the Detroit-based automaker has sold more cars in China than they have in the entire USA. We’re not making this up.
According to Bloomberg, GM’s vehicle sales in China through June 30 has already reached 1.21 million units, head and shoulders above the 1.08 million units sold of GM vehicles in its own home country. The unprecedented sales numbers GM put up in China is also the first time an international country has outsold the company’s own auto market. Put some perspective into that for a second. GM’s been around for over a century and not once has an outside market outsold the US market in any year. Until now, of course.
GM’s remarkable showing in China should also bode well for a company that’s still recovering from one of the worst global financial crisis in history. The mere fact that GM vehicles are going over so well in a country that’s about four times more populated than the US is a testament to the country’s increased efforts in opening itself up to the Western world. Add to the growing awareness of GM’s line of vehicles and we wouldn’t be surprised in the least bit if this figure – this 1.21 million units in the first six months of 2010 – is just the proverbial tip of the iceberg.
We’re not expecting 20 million vehicles sold in six months, but with the way things are shaping up; we wouldn’t be surprised the least bit if it hit 2 million pretty soon.
General Motors had a hard time unloading Saab off of its hands until Spyker eventually came to its rescue. Now it looks like GM is facing a little case of déjà vu after reports that Tengzhong Heavy Industrial Machinery, the company that has been linked – for the longest time – as the would-be buyer of Hummer, is apparently getting cold feet.
According to Reuters, the Chinese National Development and Reform Commission and the Ministry of Commerce, the two governing bodies that would have to approve the sale of Hummer to Tengzhong is questioning the rationality of buying a brand that’s not necessarily famous for fuel-efficiency, in light of the fact that the country is now taking steps to become more eco-friendly. Guess nobody saw that coming, huh?
Continued after the jump.
General Motors may be a long ways from getting back on its feet in the US, but in another country, the Detroit-based manufacturer is standing tall.
Despite a tenuous hold on the US auto market, GM can take comfort in the fact that they’re Chinese consumer base has more than picked up the slack, accounting for a whopping 814,442 vehicles in sales in the first six months of 2009.
It doesn’t come as the least bit surprising to us to see China establish themselves as the world’s leading auto market. After all, the country still comprises about 1/6th of the entire world’s population so naturally, that many people would entail a lot of customers too. GM also benefited through a number of stimulus policies the Chinese government has implemented, allowing foreign brands to import their products easier.
As all United States automakers (even the vaunted Toyota) decelerate their predictions for total sale in the U.S. for 2007 to barely over 16 million,
General Motors announced that it expected to sell a million vehicles in China this year.
That not only makes China the second biggest market for GM, but it makes it the market in which the growth is located. From China, GM can reach out to the rest of Indochina, including Korea, Taiwan, Malaysia, Thailand, and India.
Nobody else comes (...)