Under a major event that happened in the global automobile industry, US auto giant General Motors and China's Shanghai Automotive Industry Corp signed a deal under which the two giants will be developing technology jointly.

While the agreement is for the technology of engines and transmissions, it may be noted here that the, chairman of china's leading automaker by sales, SAIC Motor, Hu Maoyuan said that the deal is one the biggest milestones that would see two companies share key intellectual property.

Moreover, the Chairman of the company also pointed out that the deal will help SAIC move up the industry's value chain.

Hu also highlighted the fact that it is a first time on the global charts that a Chinese automaker has collaborated with a leading international group to develop a core technology while sharing intellectual property on a global scale. It is to be mentioned here that the deal is expected to boosts SAIC's efforts to master the core technology and marks movement to the higher end of the value chain.

GM Vice Chairman of Global Products Operations Tom Stephens said that under the deal, the two companies will co-develop a new fuel-efficient engine and front wheel drive transmission.