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Shanghai GM to Export Engines to Canada

FOR RELEASE: November 1, 2002

Shanghai GM to Export Engines to Canada

Shanghai, China - Shanghai GM, a joint venture between General Motors and Shanghai Automotive Industry Corporation Group (SAIC), announced today it has reached an agreement with CAMI Automotive Inc., of Ingersol, Ontario, Canada to export engines beginning in late 2003. Shanghai GM will supply 3.4-liter V-6 engines to the GM-Suzuki manufacturing joint venture.

The engines, developed by GM Powertrain, will power the new Chevrolet Equinox compact SUV to be marketed by GM beginning in 2004. The program represents the first time that an automaker in China will export high-displacement engines in large volumes to a developed country. The engine that will be exported is a variant of GM Powertrain’s overhead valve V6 family and offers customers excellent quality, reliability, durability and performance.

“GM has long been committed to integrating our China operations into our global network to contribute to the development of an advanced automotive industry in China that benefits consumers, GM and our local partners,” said Philip Murtaugh, chairman and CEO of the GM China Group. “In addition,” said Murtaugh, “this is a further example of how GM’s global alliance and partnership strategy is giving us the flexibility to leverage existing capacity at facilities like Shanghai GM for the benefit of car buyers in other parts of the world.”

“An overriding goal of Shanghai GM since its establishment has been to become a globally competitive automaker. The export of engines to North America represents a milestone for China’s most advanced automaking facility and demonstrates Shanghai (MORE) GM’s world-class manufacturing capability,” said Chen Hong, president of Shanghai GM. “Only by becoming a part of the worldwide automotive industry and leveraging our parent companies’ strengths can Shanghai GM and China’s automotive industry thrive in the face of growing competition.”

A 50-50 joint venture between General Motors and SAIC, Shanghai GM assembles and distributes a family of Buick midsize sedans, the Buick GL8 executive wagon and the Buick Sail small car family. Shanghai GM began producing engines in 1998. Its powertrain facility has an annual production capacity of 180,000 V-6 engines, 75,000 L-4 engines and 100,000 automatic transmissions. Shanghai GM is currently building 2.5-liter- and 3.0-liter V-6 engines for domestic use. Its facility, technology and quality management system are recognized as among the most advanced in the GM Global Manufacturing System.

CAMI Automotive Inc., a joint venture between GM of Canada and Suzuki Motor Corp. of Japan, opened in 1989 in a $500 million, 1.7 million square foot facility in Ingersoll, Ontario. CAMI produces the Chevrolet Tracker and the Suzuki Vitara sport utility vehicles on three shifts and employees 1,750 people.

General Motors, the world's largest vehicle manufacturer, designs, builds and markets cars and trucks worldwide. Last year it sold more than 8 million vehicles in about 200 countries and territories around the world. GM operates four joint ventures and two wholly owned foreign enterprises and has more than 8,600 employees in China.