GM Joint Venture With Chinese Automakers For Electric Cars

Presently, GM has focused on electric car segment. They have entered in to the joint ventures with Chinese car manufacturers for leading the electric car segment. GM has declared their joint venture with Shanghai car manufactures of China, they are dealing with electric cars, transfer batteries and other electronics.

Both are coming together as a 50-50 joint venture, Shanghai car manufacturers are leading manufacturers in China. Pan Asia Technical Automation Corporation is a combined firm based in Shanghai and is already helping in producing electric assist models in both countries.

Car purchasing in China is encouraging the country’s economy. The interest among the people to purchase these cars is increasing the sales of new cars. China government is also encouraging the electric car usages, so local manufacturers are focusing more on electric car productions.

Government in Beijing is also exerting pressure on foreign car manufacturers in China to come together as joint ventures to produce electric cars.

But GM has said that they are not coming together because of the Beijing government’s initative. Joint venture with Chinese manufactures is beneficial to GM in terms of low manufacturing costs and getting cheaper manpower in china. According to the automotive research, GM is getting benefits of lower priced skilled labors.