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21h ago

GM and SAIC Extend China Joint Venture to 2047 and Shift to Buick and Cadillac

The deal makes China a development and export base for locally made electric and hybrid Buicks and Cadillacs that reflects GM’s financial remediation after a multi-year restructuring with more than $5 billion in impairment charges.

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The GM logo is seen on the China Headquarters in Shanghai, China, August 29, 2022. REUTERS/Aly Song/File Photo

Overview

  • GM and SAIC announced the 20-year extension of their 50-50 China joint venture on Tuesday, extending the partnership to 2047.
  • The renewed agreement refocuses sales in China on Buick and Cadillac and ends Chevrolet showrooms in the domestic market while keeping Chevrolet production for export through a separate arrangement.
  • The joint venture will accelerate China-developed electric and hybrid models, including the Buick Electra line, and will export China-built Buicks and Cadillacs to the Middle East, Africa, South America, Mexico and other parts of Asia.
  • The move follows a deep restructuring of GM’s China business that included plant closures, model cuts and two non-cash charges totaling more than $5 billion, after losses in 2024–2025 and recent quarters of recovering profit.
  • By shifting more vehicle development and exports to China, GM aims to compete with fast-moving local rivals on price and EV tech while navigating U.S. policy limits that currently bar China-developed cars from the U.S. market.