The engineering and development work will be carried out by engineers from the two firms in Detroit, and at the Pan Asia Technical Automotive Center, a joint venture between the companies in Shanghai, GM said in a statement.
"The co-development of these new engines and transmissions builds on a strong history of innovation and collaboration between GM and SAIC Motor," GM Vice Chairman of Global Product Operations Tom Stephens said. "Together, we will continue to quickly provide our customers leading-edge technologies that improve vehicle fuel efficiency and deliver robust performance."
Stephens signed the agreement in Shanghai, along with SAIC President Chen Hong.
GM is aiming to produce more environmentally-friendly cars and to boost its presence in the Chinese auto market, which is now the world's largest.
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