General Motors (GM) and SAIC Motor’s joint venture, Shanghai GM is planning to invest CNY100bn ($16bn) over the next five years, to develop new vehicles.
The automaker intends to develop ten new or upgraded models each year until 2020 in line with plans to have 40 product lines.
The proposed plans are part of Shanghai GM's plans to gain at least 10% share of the Chinese passenger cars market.
Shanghai GM president Wang Yongqing was quoted by Reuters as saying that the company will develop green technologies, including ten traditional and plug-in hybrids with an investment of CNY26.5bn ($4.35bn) by the end of this decade.
"In terms of new energy, we are keen on power efficiency and emission control and are ardent to go electrical throughout our portfolio," Yongqing added.
By 2020, the Buick and Chevrolet brands are expected to exceed one million in sales a year.
During this period, the company intends to develop technologies to improve fuel efficiency by up to 30% as well as reduce carbon-dioxide emissions.
With 13 new engines and nine new transmissions that are set for roll out later on, Shanghai GM further plans to introduce diesel engines in line with its strategy to expand small-displacement, direct-injection and turbo engines usage, media sources said.
The Wall Street Journal reported that the latest investment is separate from GM's previously announced plans to invest $14bn through 2018 to open five new vehicle-manufacturing plants.
Image: Shanghai GM expects Buick and Chevrolet brands sales to exceed one million a year by 2020. Photo: courtesy of Navigator84 / Wikipedia.
