Chevy invests $5Bn in connected vehicles tailored for emerging markets

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Its Chevrolet brand has announced the huge investment to strengthen its business in what it sees as global growth markets.

An all-new vehicle family is planned in a bid to meet the rapidly changing demands of customers in the emerging BRIC markets.

“With a significant majority of anticipated automotive industry growth in 2015 to 2030 outside of mature markets, Chevrolet is taking steps to capitalise on that growth,” said GM’s president Dan Ammann. “Strengthening Chevrolet’s position through this major investment is consistent with our global strategy to ensure long-term profitable growth in the markets where we operate.” 

The bold move comes just days after Fiat Chrysler announced a 1.4M vehicle recall after Wired printed an article where a journalist’s Jeep was hacked through its infotainment system (see Latest ‘prank’ hack gets carmakers rattled).

And connectivity will feature large with the new vehicle family to replace several existing models.

“This new vehicle family will feature advanced customer-facing technologies focused on connectivity, safety and fuel efficiency delivered at a compelling value,” said Mark Reuss, GM executive vice president, global product development, purchasing and supply chain. “It will be a combination of content and value not offered previously by any automaker in these markets that are poised for growth.”

However, it seems clear that GM see the future in building a two-tier model range between the mature and emerging markets where its offering will be focused more on value for money than providing ‘premium’ products.

With this in mind, to save costs GM has expanded its partnership with the Chinese state-owned car manufacturer, SAIC Motor, through an agreement to jointly develop the vehicle family core architecture and engine and the vehicle family will be developed by a multinational team of engineers and designers.

Vehicles will be manufactured and sold in several markets including Brazil, China, India and Mexico, and exported for sale to other important growth markets. There are no plans to export the vehicles to mature markets in the West. Vehicle production is expected to grow to more than 2M vehicles annually with the first models planned for 2019.

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