GM, SAIC agree on closer technical cooperation

General Motors (GM) has agreed to deepen technical cooperation with its joint venture partner SAIC Motor Corp (600104.SH) and further integrate the Chinese firm into its global product development system, the Wall Street Journal reported. The agreement is intended to facilitate the joint development of electric cars and components, GM and SAIC said. It should also see the companies’ joint research and technical center in Shanghai take a more prominent role in creating future vehicles and engines. Late last year the companies also agreed to cooperate on efforts to expand into emerging markets such as India. SAIC is widely expected to buy a stake in GM through the company’s upcoming initial public offering. Analysts suggested that the agreement on closer technical cooperation would make it harder for those who might oppose significant foreign investment in GM to block SAIC from investing in GM. The US automaker received financial support from the US government as it went through bankruptcy reorganization.