DETROIT – General Motors intends to double production of OnStar-equipped vehicles in the U.S. and Canada, and target China for an onslaught of hybrid vehicles late this decade.
In 2005, OnStar telematics hardware will be built into 2.5 million U.S. and Canadian vehicles, which will grow to 3 million in 2006. Currently, OnStar is offered not only on GM vehicles, but those sold by several other manufacturers, including Honda, Acura, Lexus, Audi and Volkswagen.
Meanwhile, GM says it?s planning a major hybrid vehicle invasion of China, calling it a very important strategy. Troy Clarke, director of the automaker?s Asia/Pacific region, declined to provide precise details, but Clarke indicated the plan is to launch both a mid-size, front-wheel-drive sedan ? likely a Buick ? and a crossover sport-utility ?very quickly after? GM launches a new generation of hybrids in the U.S. in 2007.
The Chinese models would be equipped with a second-generation of the Advanced Hybrid System, or AHS2, roughly similar to the ?full? hybrid Toyota now uses in its Prius sedan. And like Toyota, Clarke indicated GM would prefer to build its hybrid models in China for domestic consumption. Final details, he added, will depend on Chinese government policies. Regulators indicated in June their desire to increase fuel economy in the fast-growing Chinese market, and for good reason considering the booming demand for imported petroleum.
?We need more of an indication from the Chinese government how they will incentivize these vehicles,? said Clarke. The heavier the incentives, he believes, the bigger the likely demand.
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