As a new part of its "Drive to Green" strategy, Shanghai GM, a joint venture between General Motors and SAIC Motor, has announced its plans to reduce its vehicles' fuel consumption and CO2 emissions by 15% for the 2011-2015 period while improving performance by 14% at the same time, media reported this week.

To this end, the company is starting to improve and optimize the performance of a traditional internal combustion engine while continuing to roll out hybrid vehicles and promote electric vehicles. It also supports other alternative technologies such as the development of hydrogen powered vehicles.

The "Drive to Green" strategy was initiated between 2008 and 2009 when Shanghai GM invested $1.1 billion in powertrain development to launch 10 engines and two hybrid systems that have been applied to 25 new vehicles. Fuel efficiency in these products has improved by between 8% and 13%.

In the next five years, Shanghai GM will introduce 12 new engines including a 1.5-liter VVT engine and a 1.4-liter turbocharged engine. It is expected that 1.4-liter to 2.5-liter vehicles will account for 95% of the company's total sales in the future.

Meanwhile, new transmissions will be applied in Buick, Cadillac and Chevrolet products offered by the company. There will also be a host of energy-saving technologies applied to its new car models.