Shanghai GM to Purchase Cars and Parts from the US

General Motors and its Chinese division Shanghai GM today signed an agreement to purchase cars, vehicle kits, machinery and equipment manufactured by the parent company in the United States. GM said that Buick, Chevrolet and Cadillac are all part of the deal so models sold under these three brands in the US should arrive in China as well in the near future.

The agreement is valued at $607 million, said General Motors, and was signed in Phoenix, Arizona in the presence of Chinese National People's Congress Chairman Wu Bangguo and Chinese Vice Minister of Commerce Ma Xiuhong.

“This agreement is a strong sign of GM’s long-term commitment to our flagship joint venture in China,” said Kevin Wale, President and Managing Director of the GM China Group. “Shanghai GM has become successful by leveraging the best global resources of its parent companies. As we are demonstrating today, we will continue to support its growth as a leader in GM’s second-largest global market.”

Shanghai GM, which is a 50-50 joint venture formed by General Motors and SAIC is selling approximately 20 different models manufactured under the Buick, Chevrolet, Cadillac and Saab brands. To give you an idea on how successful the joint venture is, Shanghai GM sold a total of 445,709 vehicles in China in 2008, while in 2009, the company delivered 408,637 units in the first eight months of the month.

Shanghai GM recently announced that it delivered the 2 millionth Buick in China, with this particular brand arriving in the country in 1998.

“It took eight years for Shanghai GM to sell its first 1 million Buicks, but only three years to sell its second 1 million units,” said Kevin Wale, President and Managing Director of the GM China Group. “This demonstrates the ongoing popularity of Shanghai GM’s leading mainstream brand in what is now Buick’s largest market.”