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GM And SAIC Co - Develops Engines And Transmission
The JV deal, between the two automakers in Shanghai will help the American car maker, GM to meet demand for small city cars in emerging markets which includes India and help reduce the production cost of developing fuel-saving advances for the US market, where GM is facing the challenge of meeting tough new fuel economy standards by 2016.
GM and SAIC have announced last December that the two firms will take their successful 12 year partnership to India with plans to make small cars as well as commercial vehicles, because SAIC has bought 50 percent stakes in GM India. The new agreement of co-developing engines and transmissions will help GM India too in its introduction of new vehicles.
GM and SAIC are set to focus on developing 1.0 to 1.5 L engines which powers the small cars generally. The two companies have collaboration of engineers in Detroit and at their engineering and design joint venture in Shanghai. GM's official report states that the engines will be twin direct injection and turbocharging to boost fuel efficiency and performance. Combined with the transmission also to be developed with SAIC, the new powertrain would improve fuel consumption by up to 20 percent.
The new transmissions may foray into Indian market once GM starts introducing SAIC products under GM India (Chevrolet) badge in the coming years.
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