GM to setup Asian headquarters in Shanghai

General Motors announced on Friday that it will be setting up a new headquarters in Shanghai, China. The announcement of the new headquarters reflects the importance of the Asian market - particularly China - to GM's global operations.

The decision to setup shop was a rather easy choice for General Motors as the Asian market is quickly becoming one of the automaker's biggest money makers. China overtook the United States as the world's largest auto market on a monthly basis in January and is expected to hold on to the full-year title. China is currently outselling the U.S. by about 1.5 million units, according to The Detroit News.

The announcement of the headquarters likely indicates a further expansion of GM's relationship with Chin's SAIC. GM and its China-partner SAIC remain one of the most successful auto ventures in the highly lucrative China market.

The decision also indicates a new way of thinking at GM. The decision process literally took minutes whereas the old GM would have likely drawn the process out for several months. "It didn't take us more than about a minute to decide where it should be," Nick Reilly, GM executive vice president and new head of international operations, told The Detroit News.