GM expands China design studio to focus on EVs, smart cars
General Motors Co said yesterday it has expanded its design studio in China, which will focus only on developing electric and connected cars and no longer design petrol vehicles.
The move comes as the largest US automaker prepares to cut out petrol and diesel vehicles from its fleet by 2035 and underscores its efforts to gain a bigger foothold in China, the world's largest electric car market.
It also plays into GM's ambitions of adding a recurring revenue stream from software and services long after the initial product is sold, a la Apple Inc, by selling EV battery charging and swapping services for example.
GM has said it wants to exceed annual sales of 1 million electric vehicles in the United States and China by 2025. Last month, the company said it would boost spending on electric and autonomous vehicles, shelling out US$35 billion through 2025, up 75 percent from March 2020 before COVID-19 hit.
With new facilities and the studio's growing team of employees, "we have the right organizations and people to bring the most desirable products to China's consumers," Julian Blissett, executive vice president and president of GM China said.
The new design studio is one of three in the world that designs future generation GM vehicles.