Joint venture between General Motors and China’s SAIC Motor Corp, Shanghai GM, is set to spend $16 billion over the course of the following five years in order to develop new cars as Shanghai GM President – Wang Yongqing – stated on Sunday.
Before the Shanghai Auto Show, Wang said to reporters that the car manufacturer will invest its money to make 10 new or upgraded models per year as to have around 40 product lines in order to cover at least 10% of the Chinese auto market which is known to be the biggest car market in the world.
Wang added that Buick and Chevrolet will surpass the 1 million milestone in annual sales by 2020 and stated that Shanghai GM will spend around $4,2 billion on environmentally friendly products by that same future year which includes 10 ”new-energy models”, traditional and plug-in hybrids. In this process, the company will reduce fuel consumption in its cars by 25-30%. Wang explained that “in terms of new energy, we are keen on power efficiency and emission control and are ardent to go electrical throughout our portfolio.”
According to Shanghai GM’s CEO, the automaker has 13 new engines and nine new transmissions in the making and is set to expand the use of small-displacement, direct-injection and turbo engines, introducing the diesel engines when the time would be right.
Shanghai GM’s announcement of $16 billion comes after the automaker got together with the e-commerce big company Alibaba Group Holding Ltd. as to expand its financing and sales options.
By Gabriela Florea