GM China Venture to Spend $16 Billion for New Products

SHANGHAI--A major General Motors Co. joint venture in China said Sunday it plans to spend 100 billion yuan, or $16.14 billion, in new-car development in the 2016 to 2020 period to cater to Chinese tastes.

Shanghai GM Co., the 50-50 joint venture between GM and SAIC Motor Corp., said the proceeds will be used to develop at least 10 all-new or face-lift models each year in the five years through 2020.

"Our five-year business plan to 2020 will have 100 billion yuan invested in new products and plants to make sure that we meet the China consumers" needs," John Stadwick, vice president of sales, service and marketing for Shanghai GM told reporters ahead of the Shanghai auto show, which starts Monday.

Last year, GM said it intends to invest $14 billion from 2014 through 2018.

A spokeswoman for GM in China said the investment announced Sunday is different from that plan and is focused on SGM only.

"Shanghai GM has to stay alert, and move even faster in shaping our core competence for the future," Wang Yongqing, president of Shanghai GM, said at the Sunday event.

Of the 100 billion yuan investment total, 26.5 billion yuan will go toward bringing green technologies to China.

"We have 13 engines and nine transmissions that we'll be launching over the next few years that are really geared to improving the overall fuel economy 25% to 30%, [and] taking [carbon-dioxide] emissions down," Mr. Stadwick said.

With the investment, Shanghai GM expects to seize a minimum 10% share of the domestic market for passenger cars, the company said.

Rose Yu contributed to this article.

Write to Colum Murphy at [e-mail]

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