Holden will lead GM's car development for China.

General Motors will lean on its Australian Holden division to develop future models for the Chinese market. The deal was set into place earlier today by the signing of a contract between Holden and Shanghai General Motors.

According to the terms of the agreement, Holden will oversee the "design, development, testing and validation of components" for SGM and its affiliates in China.

Although no specifics were discussed, it was revealed that Holden will design at least two new vehicles for the Chinese market. The new vehicles will be based on GM global platforms and developed at Holden's Technical Centre in Port Melbourne.

"Holden is a valuable source of expertise within GM International Operations and we're one of only seven fully-integrated design, engineering and manufacturing operations in the GM world," Mike Devereux, Holden's managing director, said. "We have worked with SGM and PATAC in recent years on smaller projects, but this is the first significant, long-term project to partner our organizations."

Holden has been GM's go-to division for several past projects, including the development of the Chevrolet Camaro and the Pontiac G8. It's also been rumored that Holden is currently developing a new rear-wheel sedan that will eventually be sold in the U.S. market.