GM to launch telematics service in China in 2009

SHANGHAI, Nov 29 (Reuters) - General Motors Corp (GM.N) will provide in-vehicle safety, security and communications services in China, the world's second-largest auto market, from 2009 via a local joint venture, the automaker said on Thursday.

GM subsidiary OnStar and the sales arm of GM's China partner, Shanghai Automotive Industry Corp Group, will each hold a 40 percent stake in the venture, Shanghai OnStar Telematics Co. Shanghai GM, the parent companies' carmaking venture, will hold the remainder.

Deping Xu, managing director of Shanghai Automotive's sales arm, said investment in the venture would total $46 million.

GM said the new venture would initially provide so-called telematic services, including automatic crash notification, roadside assistance and remote door unlock, for vehicles manufactured and distributed by Shanghai GM.

It will be 11-year-old OnStar's first venture outside North America.

Shanghai Automotive Industry Corp Group is the parent company of SAIC Motor Corp (600104.SS). (Reporting by Fang Yan; Editing by Edmund Klamann)