General Motors announced plans Tuesday to invest $5 billion to introduce a new family of cars under the Chevrolet line targeting emerging markets, co-developed by Chinese partner SAIC Motor.
The largest US automaker expects to manufacture and sell the vehicles in China, Brazil, India and Mexico and export the cars to other emerging countries. The first entry is expected in the 2019 model year, and the program is anticipated to grow to more than two million vehicles annually.
The core architecture and engine of the new vehicles are being jointly developed with state-owned SAIC, a leading Chinese automaker and a partner of GM on major joint ventures in the world`s second-largest economy.
GM expects the new Chevrolet line to replace several existing offerings and that the program will benefit from global economies of scale, as well as the purchase of auto parts on a local level.
"With a significant majority of anticipated automotive industry growth in 2015 to 2030 outside of mature markets, Chevrolet is taking steps to capitalize on that growth," said GM president Dan Ammann in a statement.