SHANGHAI — General Motors Co. and Chinese partner SAIC plan to jointly develop fuel-efficient small engines and transmissions, focusing on the fastest-growing part of China’s huge auto market.
The companies will develop a 1 to 1.5 liter direct-injection, turbocharged gasoline engine to be used in China and in vehicles sold globally. The work will be done in Detroit and Shanghai.
China is the biggest auto market by number of vehicles sold, and US automakers are looking to the country to drive sales and offset weak global demand.
Keen to limit a growing dependence on imported oil and clean up city skies, China is emphasizing the need for better fuel economy and emissions controls.