SHANGHAI has long felt like a second home to Matt Tsien, even before he stepped into the presidency of General Motors China last January. The 38-year GM veteran is part of Shanghai’s modern carmaking history. He participated in the negotiations for GM’s initial two joint ventures with SAIC — Shanghai GM and the Pan Asia Technical Automotive Center. He also served as vice president of SAIC-GM-Wuling in Liuzhou, Guangxi Province and is now an executive vice president of GM.

In September, Tsien received the municipal government’s Magnolia Award for his contributions to the development of the city. As the Shanghai Free Trade Zone enters its second year, Tsien discussed with Shanghai Daily on the benefits of economic reform and innovation in his industry.

Q: What’s your impression of the pilot Free Trade Zone? Can it help General Motors further develop its business here?

A: It’s a great platform for Shanghai and China to try out some innovative ideas. Currently, it is very much focused on finance and services industries, which are not GM’s area of expertise. But I believe there are a lot of possibilities we can explore. We have been experimenting with vehicle-to-vehicle and vehicle-to-infrastructure communications, which could be very helpful for megacities like Shanghai in easing traffic congestion. The Free Trade Zone could be used as a test field for intelligent transportation solutions if the government is interested.

Q: What intelligent-driving technologies can we expect to see in General Motors cars in the near future?

A: We are working on a technology called Super Cruise, which we plan to launch in the US in two years and hope to bring to China eventually.

In retrospect, we have come a long way in getting to get to this stage, taking one step at a time. More than 30 years ago, we unveiled a cruise control feature that kept cars running at a steady speed. Five years ago, we took that to the next level with our Adaptive Cruise Control, which, with the help of radar, can adjust the pace according to the speed of the car ahead.

Super Cruise will go further by referencing to a map database.

Autonomous driving will not come into reality overnight. It takes time for technologies to get more sophisticated and customers to be convinced of the reliability of handing over controls.

Q: Carmakers are not the only players in self-driving technologies. IT companies are also joining the field. What do you think about that?

A: Competition is what drives innovation forward. IT companies are trying to extend applications of their know-how, while the focus of carmakers is on how IT technologies can help them make better cars. We consider safety our top priority.

Q: Some analysts say that General Motors is slowing its pace in research and development. Could you comment on that?

A: Actually, I think we are picking up the pace. In the new energy car area, for example, we have developed a variety of offerings, including plug-in hybrids and all-electric cars.

Vehicle electrification is technically applicable, and the Chinese government is very supportive of it. To make it more commercially viable, charging infrastructure development needs to go further. We will continue to work with suppliers to bring prices down. At GM’s Advanced Technical Center in Shanghai, we have been doing tests on battery performance. It is technology breakthroughs that will eventually lead us to a turning point in the commercialization of electric cars, which cannot be driven by subsidies or discounts forever.

Q: How do you see the gap between the innovation environments in China and US?

A: China is a latecomer in carmaking, but it is a quick learner. The Pan Asia Technical Automotive Center, the joint R&D center between General Motors and its Chinese partner SAIC, has seen huge progress in vehicle and powertrain development.

It takes full credit for the development of several products for Shanghai General Motors, and it works closely with General Motors’ global research and development team. I think what makes the Pan Asia Technical Automotive Center successful are the incredible opportunities to learn from others and then put ideas to the test in real life situations instead of just letting it play in the sandbox.

Q: There has been a lot of talk about what kind of manufacturing base Shanghai needs. What’s your opinion, based on your experience of what Detroit has been through?

A: A city’s development needs to be balanced. Shanghai has very diverse interests now as it becomes actively engaged in finance, technology and manufacturing. As Shanghai GM expands its business in China, it has extended its manufacturing base beyond Shanghai to other cities, which is very natural.

Q: Almost a year ago, General Motors announced it would relocate the headquarters of its consolidated international operations from Shanghai to Singapore. How is that going?

A: Everything is well on track. We officially opened the new headquarters of our consolidated international operations in September, with GM China continuing to provide support during the transition period.

General Motors made the decision to relocate not because we think Singapore is a better place than Shanghai but because consolidated international operations no longer includes our China business, which now reports directly to GM headquarters in Detroit.

Q: Automakers in China were recently in the headlines for getting caught up in the anti-monopoly probe. How does General Motors respond to it?

A: Our principle has always been to work closely with authorities and discuss any issues openly. Shanghai GM has actively responded to requests from the National Development and Reform Commission and assisted with its survey and research of the automotive industry. We are confident about our pricing strategy, which keeps the average cost of replacing all the parts in a car comparable to the price of buying a new vehicle at a reasonable level, nearing the global standard.

Q: The Free Trade Zone is experimenting with vehicle parallel imports, which would create an alternative distribution channel for imports outside of carmaker-authorized dealerships. How do you think that will affect GM’s business here?

A: We haven’t felt much of an impact yet because about 99 percent of our sales here are driven by locally produced models. We hope customers of vehicle parallel imports can get good after-sales service even if they don’t buy through our channels.