Holden inked on Monday a deal with a General Motors affiliate under which Holden will develop at its Port Melbourne facility vehicles for China. However, it excludes manufacturing.

Holden signed the long-term agreement with Shanghai General Motors and the Pan Asia Technical Automotive Centre to develop at least two new models based on GM global platforms but tailored for the Chinese market.

The designers and engineers involved in the project will be based at the Port Melbourne Technical Centre.

Holden Chairman and Managing Director Mike Devereux said the China deal is another proof of the company's expertise within the GM operations. It is one of seven fully-integrated design, engineering and manufacturing operations under the GM brand.

"It gives the Holden workforce a great sense of pride to work on global vehicle programmes like this and to see Australian design, engineering and manufacturing expertise exported around the world," Mr Devereux told Car Advice.

Holden signed a few weeks ago a 10-year co-investment deal worth more than $1 billion. The agreement secured Holden's car assembly operations in Elizabeth, South Australia until 2022.

In 2011, GM sold more than 2.5 million units in China under the brands Baojun, Buick, Cadillac, Chevrolet, Jiefang, Opel and Wuling. Across China, GM has 11 joint ventures and two wholly owned foreign enterprises which employ over 35,000 workers.

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