General Motors and its longtime Chinese partner SAIC Motor are extending is joint venture, already one of the automotive industry’s oldest, signing a new agreement that will keep SAIC-GM operational through 2047 as the two companies continue their push into electric vehicles.
The 20-year extension renews a partnership that began in 1997, and one that has produced and sold more than 20 million vehicles under the Buick, Chevrolet, and Cadillac brands.
The timing of the agreement is coming just as foreign automakers have lost significant market share in China amid fierce competition from domestic EV makers such as BYD, Geely, and Xiaomi. GM and SAIC say their renewed partnership will focus on locally developed technology and new-energy vehicles (NEVs) to reinvigorate growth.
“Today’s agreement reflects our shared confidence in SAIC-GM and its long-term growth potential,” John Roth, GM senior vice president and president of GM China, said in a statement.
A worker on the vehicle assembly line at a SAIC-GM plant in China.
Under the plan, SAIC-GM says it will introduce at least 30 NEVs by 2030, including battery-electric, plug-in hybrid, and extended-range electric models. The company also will concentrate its attention on the Buick and Cadillac brands in China, where Buick has historically been one of GM’s strongest nameplates.
At the heart of its strategy is Buick’s Electra sub-brand, launched last year around SAIC-GM’s China-developed Xiao Yao vehicle architecture. The platform was engineered locally to respond more quickly to Chinese consumer preferences and supports multiple electrified powertrains.
GM said the Buick Electra E7 has already proven itself, exceeding 10,000 deliveries in its first month on sale. The automaker also confirmed the E7 will become SAIC-GM’s first premium new-energy vehicle exported from China when it heads to certain overseas markets in October. The joint venture plans to export vehicles to regions including the Middle East, Africa, South America, Mexico, and the Asia-Pacific region.
The renewed agreement comes despite a difficult environment for international automakers in China. Domestic manufacturers have grown rapidly, winning over the Chinese buying public with their affordable, software-focused electric vehicles. GM has responded by giving its Chinese engineering teams greater responsibility for vehicle development while leveraging innovations created in China for global markets.
But for a couple of sketchy, short-lived gigs right out of college, Natalie Neff has had the good fortune to spend the entirety of her professional life around cars. A 2023 Chevrolet Bolt EV, 1972 VW Beetle, 2007 Porsche 911 Carrera S, and a well-loved purple-and-white five-speed Schwinn currently call her garage home.
