GM, SAIC to produce all-electric vehicle

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A greater number of energy efficient cars will soon be produced in China.

According to a joint statement issued by General Motors and the Shanghai Automotive Industry Corporation, the automakers recently came to an agreement to build a new electric vehicle in China. The Pan Asia Technical Automotive Center—built by GM and SAIC in Shanghai—will serve as the manufacturing site for which the new model will be built.

"The co-development of this new electric vehicle architecture demonstrates the broad range of benefits made possible by the strong partnership between SAIC and GM," said Tim Lee, president of GM International Operations. "For almost 15 years, our two companies have forged some of the industry’s most successful joint ventures. This unprecedented level of cooperation is another demonstration of our companies’ commitment to work collaboratively."

Chen Hong, president of SAIC Motor, said the collaborative effort will benefit both countries, as vehicles with advanced technology will reach the market much faster than if GM and SAIC built a new electric vehicle without the other's help.

What the electric vehicle will be remains a mystery

While the electric vehicle's architecture has yet to be revealed, GM and SAIC say the two organizations will work collaboratively to develop key components and vehicle structures. What results will be sold in China under both the Shanghai GM and SAIC brands.

The companies said the product design and details for when it will be available to the public will be announced at a later date.

Nissan Leaf has consistently beat Chevy Volt in sales

Whatever results from the collaborative effort, GM hopes it can push out Nissan's all-electric vehicle, the Leaf, which has consistently outsold GM's Chevy Volt.

According to sales figures released September 1, GM had sold 3,172 Volts through eight months of the year, while Nissan had moved 6,187 Leafs since December 2010. As for August exclusively, again, Leafs outpaced Volts—1,362 units sold to 302 sold. However, GM told Edmunds.com's Inside Line that Nissan's ability to sell more all-electric cars would "soon change."

"The fact that more than one-third of Volt sales this month happened [the last week of August] and most 2012s are on dealer lots for less than three days is an indication that product is beginning to arrive and demand remains strong," said Rob Peterson, GM spokesman in an email to Inside Line.

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