GM, SAIC to share engine development

U.S. automaker General Motors (GM) Corp. and Chinas SAIC Motor Corp. will jointly develop small engines and transmissions as GM seeks to capitalize on the worlds largest auto market. The agreement, which was announced by the two automakers in Shanghai, marks a further expansion of their successful 13-year partnership after they agreed in December to set up a joint venture in India to make small cars and commercial vehicles. GM and SAIC will develop engines with displacements of from 1.0 to 1.5 liters in a collaboration of engineers in Detroit and at their engineering and design joint venture in Shanghai. The new GM-SAIC engines will twin direct injection and turbo-charging to boost fuel efficiency and performance. Combined with the transmission also to be developed with SAIC, the new powertrain would improve fuel consumption by up to 20%, GM said. The engines will be used by GM and SAIC in China and worldwide in the future.