Signed by GM Chairman Dan Akerson and SAIC Chairman Hu Maoyuan this week, both companies will provide equal investment into the project. SAIC provides its market knowledge, while GM adds its EV development expertise and global know-how, aimed at bringing products to market quicker than would be possible separately.

Engineers from the Pan Asia Technical Automotive Center (PATAC) that will be formed in Shanghai will work with others from GM and SAIC to build the vehicles, which will be sold in China. Technical details and release dates have not been announced yet.

It’s not the first time GM has invested in a joint venture in China. Shanghai GM introduced an all-electric concept vehicle, called the Sail, late last year. The final agreement follows a non-binding memorandum of understanding signed between GM and SAIC last November.

Chen Hong, president of SAIC Motor, commented: ‘Our agreement will enable SAIC and GM to take advantage of economies of scale and get new technology to the market faster than by going it alone. It will help bring about our goal of leading the automotive industry in new energy vehicles and our vision of sustainable transportation, which we introduced at World Expo 2010 Shanghai.’