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OnStar sets up China joint venture

A telematics joint venture has been set up in China by carm-maker, General Motors, Shanghai Automotive Industry Corporation Group (SAIC) and OnStar. Called Shanghai OnStar Telematics, it is OnStar’s first venture outside North America since it was launched 11 years ago.

The joint venture will provide a range of OnStar’s in-vehicle safety, security and communication services similar to those currently available in the USA and Canada, including advanced automatic crash notification, roadside assistance, remote door unlock, hands-free calling, vehicle diagnostics and turn-by-turn navigation. Shanghai OnStar Telematics expects to begin rolling out services in 2009, initially for vehicles manufactured and distributed in China by Shanghai GM.

“We are pleased to bring OnStar to Asia for the first time,” says Chet Huber, OnStar president. “China represents a huge opportunity to bring the safety, security and societal benefits of OnStar to a whole new audience – Shanghai GM customers. This new venture builds upon our leading position in North America and the lessons from our more than 83 million customer interactions. In China, we will provide cutting-edge services specifically developed in accordance with the needs of Shanghai GM and its customers.”

Right:
GM claims OnStar has attracted 83 million separate customer interactions in North America since it was launched 11 years ago

The new company is owned by GM subsidiary OnStar (40% stake), SAIC subsidiary Shanghai Automotive Industry Sales (40%) and Shanghai GM, a 50-50 joint venture of GM and SAIC, which owns the remaining 20%.

“Over the past decade, GM and SAIC have established eight joint ventures that are engaged in vehicle and powertrain manufacturing, sales and service, automotive engineering and design, automotive financing, and now telematics,” says Kevin Wale, GM China group president and managing director. “The launch of our new joint venture represents a significant technological step forward in our partnership.”

“Like our other joint ventures, Shanghai OnStar Telematics will contribute to the ongoing development of China’s automotive industry,” says Chen Hong, SAIC vice chairman. “Our goal is to work with our partners to make our newest joint venture the pre-eminent provider throughout China of world-class, innovative telematics services.”

November 29, 2007

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