General Motors has renewed its joint-venture agreement with China’s SAIC Motor for 20 years after a lengthy restructuring in the Chinese market. The extended 50-50 joint venture will result in more vehicle-development work being done in the world’s largest auto market to appeal to local tastes.

Focus on Cadillac and Buick Brands

GM said the company would focus on its Cadillac and Buick brands in China, where it would discontinue sales of its Chevrolet brand. The terms also will allow GM to use China as an export hub to ship Buicks and Cadillacs to the Middle East, Africa, South America, Mexico, and elsewhere in Asia.

GM was one of the first global automakers to enter China when it won a coveted partnership with SAIC in 1997 and grew to become one of the country’s top-selling carmakers. However, like many global car companies, GM has seen its sales in China decline over the past decade, as domestic automakers have grown more sophisticated and the market has moved sharply to electric vehicles.

GM sold 1.9 million vehicles in China last year, down 51% from 2016. Its Chevy brand suffered as other lower-cost competitors took market share. GM will continue to build Chevrolets and export them from China through a separate joint venture it has with SAIC and Wuling.

Electric and Hybrid Vehicles

The joint venture last year launched the Buick Electra sub-brand of electric and hybrid vehicles, which was developed in China. The Electra E7 SUV had more than 10,000 sales in its first month on the market. It will be the first premium model that the joint-venture company will sell overseas, starting in October.

SAIC-GM plans to launch at least 30 electric or hybrid vehicles by 2030. GM in 2024 began restructuring its China business amid steep market-share losses. The automaker recorded two non-cash charges totaling more than $5 billion on its joint venture in China.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.