New engine project set with China partner

Associated Press

SHANGHAI

General Motors Co. and Chinese partner SAIC announced Wednesday plans for joint development of fuel-efficient small engines and transmissions, focusing squarely on the fastest-growing segment of China’s huge auto market.

The companies, which run several joint ventures including their flagship Shanghai GM, will develop a 1-liter to 1.5-liter direct- injection, turbocharged gasoline engine to be used by both sides in China and in globally sold vehicles, they said.

The work will be done in Detroit and at Shanghai’s Pan Asia Technical Automotive Center, the companies’ joint-venture engineering and design center.

China is the biggest auto market by number of vehicles sold, and automakers such as GM are looking to the country to drive revenues and offset weak global demand, though growth has fallen off since a boom last year fueled by tax cuts and subsidies.

Those incentives, aimed mainly at fuel-efficient vehicles, spurred a surge in sales of Wuling minivans, Chevrolet Sails and other small cars.

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