The companies are panning to reinforce their collaboration in certain core areas of their business, including the development of new energy vehicles and the creation of a stronger and more integrated role for their Pan Asia Technical Automotive Center (PATAC) automotive engineering and design joint venture to work on future vehicles and powertrains.

The signing of the MoU builds on the automakers’ efforts to explore co-operation in Asia’s emerging markets, led by India, and to co-develop two efficient next-generation powertrain families. It represents an extension of SAIC and GM’s plans to build a closer strategic alliance.

A joint effort to develop more new energy vehicles and components is a core element of the anticipated strategic cooperation. It could include the co-development of key components, leveraging best solutions from either party, the development of a next-generation electric vehicle architecture for China and the acceleration of electric vehicle technical capability in the companies’ China operations.

In addition to a focus on new energy vehicles, SAIC and GM anticipate sharing an additional vehicle architecture and powertrain application in an effort to help reduce development costs and benefit from economies of scale.

They also plan to further enhance the vehicle and powertrain capabilities of PATAC, while jointly training local R&D staff. This will allow both partners to capitalize on new development opportunities in emerging markets.

Will the collaboration enhance the firms' market share in Asian region?

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