The $1.5 billion joint venture between General Motors and the Shanghai Automotive Industry (Group) Corp. builds Buick sedans and wagons for Chinese consumers. The products, based on North American designs, are customized for China.

The joint venture, which will celebrate its first anniversary next week (April 12), is closely linked to Michigan in many ways - from the $230 million of Michigan-made major equipment and machinery installed in the state-of-the-art manufacturing complex to the training of the Chinese people who work there.

"SGM is the epitome of how a global company like General Motors can create and sustain jobs for U.S. workers," said Phil Murtaugh, executive vice president of the joint venture. "Without our bill of materials, those jobs probably would not exist."

Twenty-three percent of the value of all SGM machinery and equipment contracts was sourced through 41 Michigan suppliers. Nearly 86 percent of the spending was in the Greater Detroit area.

"Last year, we imported more than $270 million from North American suppliers, and the majority came from Michigan,'' said Dave Whitman, deputy director of purchasing at SGM. "We forecast that this year, we will require nearly $160 million dollars of Michigan-produced parts to support our build plans."

The training of the Chinese work force at SGM had a lot of help from Michigan, too. Twenty engineers from Brighton helped get the Powertrain plant ready, and 80 Chinese spent from three days to two weeks in the Warren, Bay City and Romulus Powertrain facilities.

(April 8, 2000)