Shanghai Automotive Industry Corporation and General Motors are strengthening ties. The two companies will jointly develop small engine and transmission systems. The project marks the first time a Chinese automaker has played such a large role in developing core technology with a foreign partner.
Under the deal, SAIC and GM will develop engines of 1 to 1.5 litre capacity. Compared with old models, the new design will cut down fuel consumption by one fifth, as well as reduce carbon emissions. The two companies aim to make headway in the next three years, and the new engine will be used in both China and worldwide. The chairman of SAIC has praised the deal.
Hu Maoyuan, Chairman of SAIC Group said "This is a great breakthrough. In the past, we were just a user of intellectual property rights. But now we have a platform to cooperate with advanced technology developers in the world. This will rapidly enhance our capability of R and D."