GM, SAIC extend joint venture agreement to 2047

General Motors and SAIC Motor extended their joint venture agreement on Wednesday for another 20 years, one year ahead of schedule.

The renewed agreement will allow the 50-50 joint venture SAIC-GM to continue operations through 2047, showing GM's confidence in China, the world's largest auto market and the automaker's second-largest market after the United States.

First established in 1997, SAIC-GM has manufactured and delivered more than 20 million vehicles in China. 

John Roth, GM senior vice-president and president of GM China, said the extension reflects both sides' confidence in the long-term potential of the partnership.

The joint venture plans to launch more than 30 new hybrid and electric vehicle models in China by 2030 as it accelerates its electrification strategy.

GM China reported second-quarter sales of more than 357,000 units, supported by an improved product mix and resilient customer demand.

"Q2 sales demonstrate the momentum in our China joint ventures, which is supporting sustainable growth," Roth said.

GM operates two joint ventures with SAIC: SAIC-GM, which it just renewed, and SAIC-GM-Wuling, GM's joint venture with SAIC and Guangxi Automobile Group.