American automotive giant General Motors and its Chinese partner SAIC announced on Wednesday a collaboration to develop small engines and transmission systems with efficient fuel consumption, as part of a strategy focused on this rapidly growing segment of the vast Chinese automotive market.
The two companies, which already have several joint ventures including the successful Shanghai GM, will develop a 1 to 1.5-liter turbocharged gasoline engine with direct injection for installation in vehicles intended for the Chinese and global markets. The companies plan to divide the work between Detroit and the engineering and design center of their joint venture in Shanghai, the Pan Asia Technical Automotive Center. China is the largest automotive market by the number of cars sold and as such attracts automotive companies like GM that are seeking to achieve revenue growth there to compensate for weak global demand. Similarly, Ford Motor Co. announced the installation of a new line of 1-liter turbocharged EcoBoost gasoline engines that will enable 20 percent more efficient fuel consumption in the Ford Mondeo models produced in its joint venture Changan Ford Mazda Automotive Ltd. in the Chinese city of Chongqing. (H)
