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NINETY EIGHT REGENCY

GM in talks for 44% stake in SAIC-GM-Wuling venture

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GM in talks for 44% stake in SAIC-GM-Wuling venture

By George Gao From:Gasgoo.comJune 21, 2010

Shanghai, June 21 (Gasgoo.com) To expand its growth in the Chinese market, General Motors is in talks with the local government of SAIC-GM-Wuling for higher stake in this minivan joint venture in China, media reported recently.

The U.S. auto giant is talking with southern China's Guangxi regional government to raise the company's stake in the venture to 44% from the current 34%, with SAIC controlling 50.1% and Wuling Motors owning 5.9%.

The venture is a three-way tie-up among GM, SAIC Motor and Wuling Motors which is owned by the Guangxi Zhuang Autonomous Region government. The venture makes Wuling brand mini-trucks, minivans and the Chevrolet Spark mini-car.

SAIC-GM-Wuling plans to increase its production capacity and launch a new car brand. The expansion is intended to boost GM's business in China, as the Wuling venture is playing a bigger role than the flagship car venture Shanghai GM in GM's China sales growth.

Last year, the mini-vehicle venture sold 1.1 million units last year, a year-on-year increase of 66%, which contributed more than half of GM's total sales of 1.8 million vehicles in China. It is the first Chinese automaker to achieve annual sales of 1 million units.

SAIC-GM-Wuling exports vehicles to Brazil that are sold under GM's Chevrolet brand. It will also make cars in India under a GM plan to expand in the market with SAIC.

GM expects to sell more than two million vehicles in China this year, up at least 13%, with more than half of the sales volume still to be achieved by SAIC-GM-Wuling, in which GM now holds 34% share.

link:

http://autonews.gasgoo.com/auto-news/1015677/GM-in-talks-for-44-stake-in-SAIC-GM-Wuling-venture.html

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