GM inks US$100m investment deal with Pudong to show commitment and confidence
General Motors and Shanghai's Pudong New Area government on Thursday inked a Letter of Intent for the automaker's proposed investment of US$100 million in the GM Premium Import business.
"Our latest agreement demonstrates GM's long-term confidence in Pudong, Shanghai and the Chinese market," said Julian Blissett, GM executive vice president and president of GM China. "It will enable us to capitalize on emerging opportunities to delight consumers with a greater array of products and services."
The new investment follows last year's expansion of the GM China Advanced Design Center in Pudong, a US$300-million investment in Chinese startup Momenta, and the launch of China's first Ultium Center in Pudong to assemble battery packs for GM's growing number of new energy vehicles for the domestic market.
The new Premium Import business, tailored for China, will present a curated collection of iconic GM products through an innovative platform-based business model, and will complement the existing portfolio and business models, the company said.
The portfolio will range from full-size SUVs and pickup trucks to performance cars, to address evolving demand in the niche market, complementing GM's locally-produced model and brand lineup.
GM's cooperation with Pudong dates back about 25 years with the establishment of the SAIC-GM and PATAC joint ventures.
"Since then, we have been deeply rooted here," Blissett said. "We view Pudong and Shanghai not only as the automotive industry powerhouse in China, but also a welcoming home for innovators."
The company has built a full-fledged capability in manufacturing, design, engineering and R&D in China, and introduced five distinct brands and a wide spectrum of products across all major market segments.