2010-11-04 10:22

SHANGHAI - General Motors Co and its China partner, SAIC Motor Corp Ltd, said Wednesday they have agreed to boost cooperation in the development of new energy vehicles.

The two auto giants will also increase the role of their joint engineering and design group, the Pan Asia Technical Automotive Center, to work on future vehicles and powertrains.

The signing of the memorandum of understanding followed the two companies' efforts to explore cooperation in Asia's emerging markets, led by India, and to co-develop two efficient next-generation powertrain families, they said in a statement.

"It represents an extension of SAIC and GM's plans to build a closer strategic alliance," the statement noted.

The core of the cooperation is to jointly develop more new energy vehicles and components.

SAIC and GM also expect to share vehicle architectures and powertrain applications to help reduce development costs and improve energy efficiency, it said.

In the first 10 months of 2010, SAIC GM, the two auto manufacturers' passenger car venture, sold more than 840,000 vehicles in China.