Holden to Develop Models for China

Australia's GM Holden Ltd. has agreed to develop at least two new models for Shanghai General Motors and the Pan Asia Technical Automotive Center for sale in China.

Shanghai GM and PATAC are joint ventures of Shanghai Automotive Industry Corp. and Holden's parent, General Motors Co.

Holden will design unspecified models based on GM's global platforms at its Port Melbourne, Australia, technical center. Shanghai General Motors will begin building the vehicles in China within four years.

Last month GM and the Australian government agreed to invest $1 billion and $284 million, respectively, in Holden. The money will enable the unit to develop two new models that will go into production at its plant in Elizabeth, South Australia, in the second half of this decade.