GM Renews China Joint Venture With SAIC in 20-Year Agreement

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(Bloomberg) — General Motors Co. is renewing its longtime joint venture with China’s SAIC Motor Corp. for 20 years, proof the US automaker sees enough progress to stay in the world’s largest auto market after years of decline.

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With the deal, GM and SAIC will both own 50% and continue to jointly develop models using design and engineering operations in China. They will also continue to split profits. 

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Bloomberg News reported in September that the companies were in preliminary talks to renew the venture.

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The business intends to launch at least 30 new energy vehicles by 2030 as part of the deal, according to a statement from GM. The joint venture will also “sharpen its focus” on the Buick and Cadillac brands, which have historically had a strong presence in China.

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The new agreement comes after several years of discussions between the two companies and a restructuring of the business that came with billions in losses. The venture is profitable again after years of decline amid competition from China’s domestic industry. Both companies made billions together before falling on hard times two years ago, leading them to rein in their ambitions.

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GM and SAIC will sell the Buick and Cadillac brands in China and use Chevrolet as an export brand for small, inexpensive models to global markets. Those cars will not be sold in the US, Canada or Europe. 

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“Today’s agreement reflects our shared confidence in SAIC-GM and its long-term growth potential,” said John Roth, a GM senior vice president and president of GM China. “We are committed to strong performance in the China market, and we see meaningful opportunities to compete in select international markets: the Middle East, Africa, South America, Mexico and Asia-Pacific.”

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With the new deal, GM and SAIC will also keep their second joint venture with partner Guangxi Automobile Group, which builds the small Wuling brand vehicles. GM exports many of those models under the Chevy brand. 

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GM once made $2 billion a year in profit in China. The business declined and lost money in 2024 before turning things around, but its profits are a fraction of what GM once made. GM reported $248 million in equity income from the venture in the first half of 2026, which is double the same period a year ago.

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The joint venture suffered when China’s surging automakers came out with more hybrid-electric and electric vehicles, which the government had strongly encouraged among consumers. 

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GM took $5 billion in write downs while restructuring the business as it closed plants, cut jobs and worked to get its product line in step with the market.

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GM and SAIC are showing off the Buick Electric E7 plug-in hybrid at the Shanghai Auto Show this week.

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