GM unit in tie-up to service mainland cars
General Motors China and SAIC Motor Corp yesterday announced a joint venture - Shanghai OnStar Telematics - to service vehicles after they are sold.
OnStar, a subsidiary of General Motors, and SAIC will each own 40 per cent of the joint venture. The remaining 20 per cent will be owned by Shanghai General Motors, a 50-50 joint venture of GM and SAIC. OnStar is forming a joint venture outside North America for the first time.
Shanghai OnStar is expected to begin introducing automotive safety and communication services in 2009, initially for vehicles made and distributed on the mainland by Shanghai GM.
General Motors China sold 876,747 vehicles in the country last year, a 31.7 per cent increase from a year earlier. The company has an 11.7 per cent market share on the mainland. In November last year, GM said it planned to invest about eight billion yuan annually in the country as part of efforts to tap the fast-growing vehicle market.