GM Mulls Opening the Sixth Global R&D Center in China

SHANGHAI - September 19, 2007:

General Motors is studying the feasibility of seting up its new R&D center in China, while attempting to enter the Chinese commercial vehicle market, China Business News reported yesterday.

Kevin Wale

"We are now studying all possibilities," said Kevin E. Wale, chairman and managing director of GM China, who confirmed GM had interests in exploring the untapped commercial vehicle market after long cooperation with SAIC in the passenger vehicle sector.

Currently GM has five global R&D centers in the U.S., Germany, S. Korea, Australia and Brazil. The projected research center, if founded, would be its sixth one. Chinese media said that GM China has bought a piece of land for the new center.

In China, GM has already set up a R&D center along with its Chinese partner SAIC, in which each controls a 50 percent stake. The center, established in 1997 and named Pan Asia Technical Automotive Centers (PATAC), serves Shanghai GM and SAIC-GM-Wuling, GM's two joint ventures in China.

The upcoming R&D center will be solely financed by GM, which analysts say could meet GM's ambition in China. It could also be a sore point between GM and SAIC, as the latter wants to create its independent brand and have more say in PATAC, said China Business News.

An unnamed source who is involved in GM's commercial vehicle project said that GM is assessing possibilities to partner with FAW, a leading commercial vehicle maker in China.

For more information about the burgeoning auto industry in China please visit http://www.gasgoo.com/Autobiz/list/7/China-News.html