GE, GM Sign MoU to Set Up Charging Stations Across Shanghai

In order to speed up the implementation of electric vehicle charging infrastructure, both General Motors Company (NYSE:GM) and General Electric Company (NYSE:GE) have signed a memorandum of understanding on Thursday to work jointly in China to install electric charging stations.

The cooperation between General Motors and General Electric will be initially focused upon the Shanghai metropolitan area which is the first electric vehicle pilot area in China as designated in the memorandum of understanding which was signed in Shanghai, China. The two majors will work together to install charging stations at the EV demonstration zone and also at the offices of General Motors in Shanghai. Both the companies have their China headquarters based in Shanghai itself.

According to the agreement, General Electric will purchase an unspecified number of General Motor’s new Chevrolet Volt, which comes with a battery as well as an internal combustion engine which comes to life when the battery runs out. The company plans to use these Chevrolet Volts at their Shanghai campus.

General Motors have planned to launch its Chevrolet Volt cars into the Chinese market by the end of 2011. These cars can run about 80 kilometers on the battery and the gas powered engine is capable of running for about 490 kilometers.

China currently has the world’s largest automobile market since it overtook the United States in 2009. Due to the rapid increase in the number of cars and pollution, Chinese automakers are producing varieties of electric vehicles to keep the pollution in check.

The agreement between General Electric and General Motors come within two days after the U.S automaker General Motors entered into an agreement with its Chinese partner SAIC Motor Corp. to manufacture electric vehicles in China.

Chevrolet Volt is not eligible for the green subsidies in China as it is not manufactured in China. The deal between General Motors and SAIC motor corp. will allow them to manufacture electric vehicles which satisfy the requirements to be eligible for the green subsidies. The subsidies will allow the buyers to get a discount on their vehicles either before or after the purchase of these electric vehicles.

General Motors and General Electric will be working closely with the regulators, Chinese ministries and the grid operators to frame the standards for electric vehicles in China. According to an announcement made by the district government of Jiading, it has planned to establish about 770 recharging stations for electric vehicles across the district by the end of this year.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.