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 DETROIT, Jan. 6 /PRNewswire/ -- General Motors (NYSE: GM), Beijing Wan Yuan Industry Corporation, and Beijing Economic Technology Investment Development Corporation have formed a joint venture to develop, manufacture, and sell automotive engine management systems in China.
 Wan Yuan is a subsidiary of the China Aerospace Corporation and is responsible for the development, manufacture, and testing of launch vehicles for space satellites. Beijing Economic Technology Investment Development Corp. (BETIDC) is an enterprise under the direct leadership of the Beijing Municipal Government.
 The joint venture, to be called Beijing Wan Yuan-GM Automotive Electronic Control Co., Ltd., was announced today at the 1994 North American International Auto Show by J.T. Battenberg III, GM vice president and group executive in charge of GM's Automotive Components Group (ACG) Worldwide. The announcement was made in Beijing by Mr. Shen Xin-Sun, president of Wan Yuan, and Mr. Wang Guang-Quan, president of Beijing Economic Technology Investment Development Corp.
 "This joint venture represents one more step in the ACG's efforts to invest in the growth of China and its emerging automotive market," Battenberg said. "A strong local automotive systems and components infrastructure will foster the rapid growth of the Chinese vehicle market. The ACG Worldwide is committed to using our vast technological resources to develop this capability in China."
 Mr. Shen Xin-Sun noted that Beijing Wan Yuan Industry Corporation has had a long and established relationship with General Motors.
 "Wan Yuan and GM Hughes have cooperated closely in the launching of communications satellites for many years," he said. "Wan Yuan has been working with the ACG on the development of this joint venture for automotive engine management systems with the support of various Chinese ministries and government organizations, the Beijing Municipal Government, and the China Aerospace Corporation.
 "The culmination of these negotiations in today's joint venture announcement means Wan Yuan and GM are cooperating on earth as well as in space."
 GM will hold a 51-percent interest in Beijing Wan Yuan-GM Automotive Electronic Control Co., Ltd. The remaining equity will be held by Wan Yuan (39 percent) and BETIDC (10 percent). The joint venture will be governed by a board of directors with representation from each of the three parties and will be headquartered in Beijing.
 For its initial phase of operations, the total investment of the joint venture will be $30 million. Total investment could reach $120 million during subsequent phases.
 GM participants in the joint venture are the AC Rochester and Delco Remy divisions of ACG Worldwide and Delco Electronics Corporation, a subsidiary of GM Hughes Electronics Corporation. AC Rochester will be the lead division and program manager for the joint venture.
 An engine management system is an integrated set of components which work together to optimize emissions control, fuel economy, and performance in a vehicle.
 Beijing Wan Yuan-GM Automotive Electronic Control Co., Ltd. will provide on-site applications engineering and vehicle calibration, manufacture components, and sell engine management systems in the growing Chinese market. Battenberg noted that Bei Nei Engine purchased a 2.0-liter engine line from GM in 1989 and is a potential customer of the new joint venture. Eventually, engine management systems could be exported.
 Initial engine management component production will be sourced from GM plants in North America, Europe and the Asia-Pacific region. Up to 75 percent of this component production eventually will shift to China.
 To assist in the localization effort, Chinese engineers and technicians will be trained to calibrate engines in the United States, Europe, and other GM locations around the world.
 Engine management is one of seven strategic automotive systems ACG Worldwide has identified as offering the greatest potential for long-term worldwide growth, Battenberg said. The others include energy storage and conversion systems, lighting systems, occupant environment systems, power and signal distribution systems, ride and handling systems, and thermal management systems. ACG Worldwide will focus its technology, design, engineering, manufacturing, and people resources on these seven market areas.
 Battenberg noted that the Beijing Wan Yuan-GM joint venture is one of many business activities in China involving ACG divisions.
 These include working relationships between AC Rochester Division and Zhuzhou Spark Plug; Delco Remy Division and Hubei Auto Electric Motor Plant; Saginaw Division and Yubei Machinery; Harrison Division (through a Korean joint venture) and Mudanjiang Air Conditioning Factory; and Packard Electric Division and Changchun Bulb Factory and Baicheng Automotive Wiring Plant.
 -0- 1/6/94
 /CONTACT: Cr?les C. Licari of Automotive Components Group, 313-857-4411; or Daniel L. Dolan of AC Rochester Division, 313-257-7723/

CO: General Motors Corporation; Beijing Wan Yuan Industry Corporation;
 Beijing Economic Technology Investment Development Corporation ST: Michigan IN: AUT SU: JVN

ML -- DE004 -- 6934 01/06/94 09:46 EST
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Publication:PR Newswire
Date:Jan 6, 1994

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