China and the USA hand in hand for another two decades in the automotive field. General Motors has renewed its joint venture with SAIC Motor for another 20 years, thus allowing GM to use China as a hub for export in a context of increasing competition from Chinese brands, both inside and outside the local market. This is reported by Reuters: this renewal represents the response to the growing pressure exerted by Chinese companies such as BYD in the Asian country and in major foreign markets.
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GM renews the agreement with SAIC
General Motors is experiencing and has experienced a process of long restructuring in China, which has included the closure of plants and the elimination of some models. The twenty-year renewal of the agreement also outlines the difficulties that the American giant encounters in becoming completely independent from China regarding revenue, low-cost production, and technological know-how, despite persistent geopolitical tensions. Meanwhile, GM has also stated that the renewal of the 50-50 joint venture will lead to a increase in vehicle development activities in the world’s largest automotive market, in order to meet local tastes.
Chinese market and beyond
According to rumors, the agreement will allow GM to export Buick and Cadillac from China to the Middle East, Africa, South America, Mexico, and other parts of Asia, starting with exports of the Buick Electra series, developed in China, expected by the end of the year. SAIC has instead stated that the renewed partnership will allow “to globally share Chinese local innovation”. Under the new agreement, the American giant will focus on the Cadillac and Buick brands in China, discontinuing Chevrolet sales in the country. The range of the latter brand will continue to be produced and exported through GM’s separate joint venture with SAIC and Wuling.
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