General Motors will invest $5 billion to build a global line of cars with Shanghai-based SAIC Motors that will be sold in Brazil, China and other emerging markets, the automaker announced Tuesday.
The cars won't be sold in the United States, according to the statement.
The global vehicles will go on sale starting in 2019 and the automaker expects the line to eventually produce roughly 2 million cars annually.
GM said the new global architecture would replace several existing models, but didn't specify what those outgoing models would be. The vehicles would be manufactured in China, Brazil, Mexico and India and exported to other countries. GM said they expect to source many of the car's components from local suppliers.
"With a significant majority of anticipated automotive industry growth in 2015 to 2030 outside of mature markets, Chevrolet is taking steps to capitalize on that growth," General Motors President Dan Ammann said in the statement . "Strengthening Chevrolet's position through this major investment is consistent with our global strategy to ensure long-term profitable growth in the markets where we operate."
In February, SAIC and General Motors (through its Shanghai General Motors Wuling joint venture business) opened a plant in Indonesia to build SAIC-branded cars. SAIC also owns British car company MG.
The GM-SAIC partnership has an interesting history, especially in India.
The post GM to Develop Global Car with China-based SAIC Motors appeared first on The Truth About Cars.
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