GM Renews China Joint Venture With SAIC in 20-Year Agreement

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Or sign-in if you have an account.(Bloomberg) — General Motors Co. is renewing its longtime joint venture with China’s SAIC Motor Corp. for 20 years, proof the US automaker sees enough progress to stay in the world’s largest auto market after years of decline.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountWith the deal, GM and SAIC will both own 50% and continue to jointly develop models using design and engineering operations in China. They will also continue to split profits. Bloomberg News reported in September that the companies were in preliminary talks to renew the venture.The business intends to launch at least 30 new energy vehicles by 2030 as part of the deal, according to a statement from GM. The joint venture will also “sharpen its focus” on the Buick and Cadillac brands, which have historically had a strong presence in China.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe new agreement comes after several years of discussions between the two companies and a restructuring of the business that came with billions in losses. The venture is profitable again after years of decline amid competition from China’s domestic industry. Both companies made billions together before falling on hard times two years ago, leading them to rein in their ambitions.GM and SAIC will sell the Buick and Cadillac brands in China and use Chevrolet as an export brand for small, inexpensive models to global markets. Those cars will not be sold in the US, Canada or Europe. “Today’s agreement reflects our shared confidence in SAIC-GM and its long-term growth potential,” said John Roth, a GM senior vice president and president of GM China. “We are committed to strong performance in the China market, and we see meaningful opportunities to compete in select international markets: the Middle East, Africa, South America, Mexico and Asia-Pacific.”With the new deal, GM and SAIC will also keep their second joint venture with partner Guangxi Automobile Group, which builds the small Wuling brand vehicles. GM exports many of those models under the Chevy brand. GM once made $2 billion a year in profit in China. The business declined and lost money in 2024 before turning things around, but its profits are a fraction of what GM once made. GM reported $248 million in equity income from the venture in the first half of 2026, which is double the same period a year ago.The joint venture suffered when China’s surging automakers came out with more hybrid-electric and electric vehicles, which the government had strongly encouraged among consumers. GM took $5 billion in write downs while restructuring the business as it closed plants, cut jobs and worked to get its product line in step with the market.GM and SAIC are showing off the Buick Electric E7 plug-in hybrid at the Shanghai Auto Show this week.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.