General Motors had signed MoU last year with Reva Electric Company to use their technology to manufacture their Chevrolet Spark Electric model for the Indian customers. Now General Motors plans to manufacture its own electric motors for its hybrid and electric vehicles. General Motors will venture into its new business starting from 2013 that will enable it to build better quality motor as well as lower its costs. In 2013, new electric motors built by General Motors will be launched on rear-wheel-drive, two-mode hybrid vehicles.

"We need to not only buy the parts, we need to really understand them," said Pete Savagian, engineering director for hybrids and electric motors, in a conference call with reporters.

So far the company has not decided the place where it will manufacture its engines. Its current production of hybrid transmissions takes place at White Marsh, Maryland.