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.November 03, 2004
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This Week:

• All-new 2005 Chrysler 300 Wins "Editors' Most Significant Vehicle of the Year" Award from Edmunds.com

• Jaguar Unveils Bonspeed® X-TYPE CONCEPT At SEMA SHOW

• Strong third quarter for the BMW Group

• Honda Names All-New 4-Door 4WD Truck 'Ridgeline'

• GM, SAIC to Pursue Joint Development of Clean Vehicles in China

• Toyota Announces Record Semi-Annual Results

• Mercury Mariner Builds On Design Appeal With SEMA "Urban Edition" Concept

• Nissan Net Income Rises to 238.8 Billion Yen in FY04 First Half

• DaimlerChrysler AG Receives Approval for Feasibility-Plans to Produce Mercedes-Benz Passenger Cars and Vans in China

• BMW Unveils Four New Miniature Art Cars Modeled From the Original Racing Art Cars By Chia, Nelson, Penck and Stella

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GM, SAIC to Pursue Joint Development of Clean Vehicles in China

• Agreement First of Its Kind Between Global, Chinese Automakers

• Joint Development and Commercialization of Hybrid, Fuel-Cell Vehicles Planned

During the signing ceremony, GM Chairman and CEO Rick Wagoner and SAIC Chairman Chen Xianglin announced the partners will co-develop a demonstration vehicle using the latest fuel-cell technology, building on GM's HydroGen3 fuel-cell vehicle. The two-year demonstration, which will begin in Shanghai early next year, is designed to showcase the benefits of fuel-cell vehicles in real-life applications.

The agreement reinforces the two partners' strong commitment to provide solutions to address concerns over energy security and to reduce the environmental impact of China's growing number of motor vehicles. GM China Group Chairman and CEO Phil Murtaugh and SAIC President Hu Maoyuan signed the agreement in the presence of Wagoner and Shanghai Vice Mayor Hu Yanzhao.

"The agreement represents another dimension in the developing partnership between GM and SAIC," Wagoner said. "It will help stake out a leadership position for GM and SAIC in the development of energy-efficient and environmentally clean vehicles in China. This is in support of the long-term strategic plan of the Chinese government to promote a sustainable automotive industry."

The partners intend to:

• Develop local engineering capability for clean-energy vehicles.

• Promote the development of a Chinese hydrogen infrastructure.

• Contribute to the formulation of relevant regulations and policies by the Chinese government.

• Promote general awareness of the future of advanced vehicle technology in China.

• As part of the agreement, GM and SAIC have agreed to carry out a series of joint programs.

On Oct. 11, the two companies announced their first hybrid bus program for the China market. The program represents the initial stage of the implementation of the agreement signed today. The unique vehicle will feature a hybrid system developed by GM's Allison Transmission, and a bus from a SAIC joint venture. It will provide valuable information that the partners can use to study the feasibility of mass-producing the bus.

GM's Pan Asia Technical Automotive Center will be responsible for maintaining the daily operation of the demonstration fuel-cell vehicle. This will enable PATAC to become familiar with the latest alternative propulsion technology in order to enhance its own product development capability. It will further serve as an important point of reference for government decision-makers in creating regulations and standards and developing infrastructure required for the next generation of vehicles.

In addition, GM will leverage its industry-leading fuel-cell technology to fully support SAIC's bid in the fourth quarter of 2005 to take part in the Global Environment Facility/United Nations Development Program Demonstration for Fuel Cell Bus Commercialization program in China.

This isn't the first time GM and SAIC have partnered in fuel-cell technology. The partners were the first to demonstrate fuel-cell technology when they unveiled a fuel-cell Buick GL8 minivan, called the Phoenix, in November 2001. The Phoenix was powered by a 35-kilowatt, first-generation, fuel cell stack from GM. The newer HydroGen3 is about twice as powerful and much more refined.

(Oct 30, 2004)