China Watch : SAIC Motor acquires a 1% stake in General Motors
Automotive News China, 18th November, 2010
SHANGHAI – SAIC Motor Corp. says its wholly owned subsidiary in Hong Kong has acquired a 0.97 percent stake in General Motors for $500 million during GM’s IPO in the United States.
A Shanghai-listed subsidiary of Shanghai Automotive Industry Corp. (SAIC Group), SAIC Motor says the investment was made in view of its strategic partnership with GM and its confidence in GM’s future.
In its statement, SAIC Motor noted that GM had been profitable for the last three quarters. In addition, “The U.S. automotive market is gradually stabilizing and rebounding, and strong vehicle demand from the emerging markets has also provided GM with opportunities for further growth,” the statement added.
SAIC Motor and GM have two production joint ventures in China: Shanghai General Motors Co. and SAIC-GM-Wuling Automobile Co. Shanghai GM manufactures Buick, Chevrolet and Cadillac branded vehicles, while Wuling is China’s largest producer of low-priced mini commercial vehicles. Both ventures are profitable and growing.
Last year, SAIC Motor and GM formed a joint venture to sell Wuling’s commercial vans in India, South America and other emerging markets. In August, the partners signed an agreement to jointly develop new powertrains while, in November, they signed a Memorandum of Understanding to develop electric vehicles.
[Source: Automotive News China]