General Motors will sell Chinese joint venture partner Shanghai GM complete vehicles, vehicle kits, machinery and equipment worth US$607m.
Buick, Chevrolet and Cadillac vehicles are part of the deal signed in Phoenix, Arizona, during the visit of a senior Chinese trade delegation to the US.
“This agreement is a strong sign of GM’s long-term commitment to our flagship joint venture in China,” said GM China chief Kevin Wale. “Shanghai GM has become successful by leveraging the best global resources of its parent companies. We will continue to support its growth as a leader in GM’s second-largest global market.”
Shanghai GM is a 50-50 joint venture between GM and Shanghai Automotive Industry Corp. Group (SAIC) and is one of eight joint ventures operated by the partners. Formed in 1997, Shanghai GM sells a mix of locally assembled and imported Buick, Chevrolet, Cadillac and Saab models.
It sold 445,709 vehicles in China in 2008 and another 408,637 units in the first eight months of this year, a year-on-year increase of 33.5%.