Shanghai GM Signs Agreement to Build Proving Ground

Anhui Province, China

Hefei, China – Shanghai General Motors signed a letter of intent today with the People’s Government of Guangde County in eastern China’s Anhui province to establish China’s largest and most comprehensive vehicle proving ground.

The Shanghai GM Guangde Vehicle Proving Ground, which represents total investment of approximately RMB 1.6 billion, will cover an area of 5.6 square kilometers. It will satisfy the long-term product development and testing needs of Shanghai GM, GM’s flagship manufacturing joint venture in China, as well as GM’s Pan Asia Technical Automotive Center (PATAC) automotive engineering and design joint venture.

The multifunctional facility will have 60 kilometers of testing roads that will be built according to local and global industry standards. It will include a high-speed bowl, a durability road system, a dynamics pad, low-coefficient straightaways, and a ride and handling track.

The proving ground will be capable of testing up to 140 vehicles simultaneously under a full range of real-world situations, and have an estimated annual testing distance of 20 million kilometers. Additional facilities at the proving ground, including testing labs and maintenance workshops, will cover an area of 20,000 square meters.

“With the Shanghai GM Guangde Vehicle Proving Ground, we will be able to continue developing products that are world class in every way – but faster and more cost-effectively than ever before,” said Kevin Wale, President and Managing Director of the GM China Group. “This will help ensure that the GM family in China remains a leader in meeting the rapidly changing needs of vehicle buyers nationwide.”

GM has a set of standards for its professional proving grounds. The automaker requires proving grounds to be built on level land in locations with suitable weather conditions for vehicle testing. There must be adequate infrastructure and sound drainage and flood control systems in place. GM also seeks venues that require minimal relocation. The Shanghai GM Guangde Vehicle Proving Ground, in Anhui’s Guangde County, will be located about three and a half hours away from Shanghai by road.

Shanghai GM and PATAC are both 50-50 joint ventures between GM and Shanghai Automotive Industry Corp. Group (SAIC), one of China’s leading passenger car manufacturers. Shanghai GM produces, imports, sells and services vehicles under the Buick, Cadillac, Chevrolet and Saab brands. Last year, it sold 413,367 vehicles. It has been China’s leader in passenger car sales for the past two years. PATAC, which is based in Shanghai, provides automotive engineering services, including design, development, testing and validation of components and vehicles to GM, SAIC and their joint ventures.

I don't like "joint ventures." To me the phrase translates to "we get all of GM's knowledge and then turn around and screw them somehow later."

I guess Mr. Doane's new address will be in China.