Shanghai, September 9 (Gasgoo.com) According to a $607 million agreement signed today, Shanghai GM will buy vehicles, machinery and equipment from its parent General Motors to meet the surging vehicle demand in the Chinese market, Bloomberg reported.
Vehicles of Buick, Chevrolet and Cadillac brands will be included in the deal, which was signed today in Phoenix during the ongoing visit to the U.S. by Wu Bangguo, chairman of the China National People's Congress, GM said in a statement.
Shanghai GM is a passenger car venture equally owned by General Motors and SAIC Motor, China's largest automaker. The flagship China venture of GM was formed in 1997 and sells more than 20 models under the Buick, Chevrolet, Cadillac and Saab brands.
China's stimulus plan helped auto sales in the country jump 29% to 8.33 million vehicles in the first eight months. Auto sales in China may rise 28% to 12 million this year, enough for the country to surpass the U.S. as the world's largest auto market.
The stimulus program has boosted GM sales in China, the U.S. auto giant's second-largest market, by 50% to 1.11 million vehicles during the eight-month period, surpassing the full-year tally for 2008.
Shanghai GM sold 63,303 vehicles in August, almost double the amount of a year earlier.
