GENERAL Motors Corp announced yesterday it would set up a US$250 million research center in Shanghai in the race to commercialize alternative fuels.
The GM Center for Advanced Science and Research, with the first phase of construction to be completed late next year, will help the world's largest auto maker to cooperate with the Chinese government, industry partners and universities on developing alternative fuels.
"We believe China has the potential to become a leader in the adoption of alternative propulsion systems," said Rick Waggoner, chief executive officer of GM at a news conference in Beijing. "The new research center will work on alternative fuels, alternative propulsion systems such as fuel cells and technology to improve energy efficiency."
General Motors is among several global car makers to localize their research and development centers for alternative fuels in China. The government is promoting diversified energy solutions to make its transport more eco-friendly and less reliant on oil as car ownership booms.
China is now the world's second-largest auto market, behind the US, with a sales forecast of 8.5 million vehicles this year.
Next year, GM will start to produce a hybrid model in its joint venture in Shanghai in partnership with Shanghai Automotive Industry Co. Its biggest rival Toyota produced a local model of its Prius hybrid last year.
Car makers are competing to develop alternative fuels such as hybrid models, fuel cell, biofuel, diesel and other sources, which cause less pollution compared with gasoline.
In addition to the new science center, GM and SAIC will also jointly invest US$5 million within the next five years to build an automotive energy research center in Beijing with Tsinghua University.
Also yesterday, GM unveiled three of its latest alternative fuel models in Beijing in their Asian debut. They were the Chevrolet Equinox Fuel Cell electric vehicle, Saturn Aura Green Line Hybrid and Chevrolet Tahoe 2-Mode Hybrid.
Waggoner said great change will take place in the current automotive energy diversification, with commercialization of the alternative-fuel powered vehicles on track to be realized in 2012.
About 100 fuel-cell vehicles will start trials in the United States, Europe and China next year before hitting the market, Waggoner said.
Alternative-fuel models now account for 10 percent of GM's total sales of 9.3 million units this year, and Waggoner predicted that the proportion will rise to 50 percent in the future.
Last year GM sold a total of 876,747 vehicles in China, and expects sales this year to hit one million. The car maker sees China as a hot spot after declining sales and profit losses in the United States.