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]

Clive Goldthorp

About the Author:

Clive claims that his interest in the BMC>MG story dates back to his childhood in the 1960s when the family’s garage premises were leased to a tenant with an Austin agency. However, back in the 1920s and 1930s, his grandmother was one of the country’s first female Garage Proprietors so cars probably run in his genes! Admits to affairs with Alfa Romeos, but has more recently owned an 06/06 MG TF 135 and then a 15/64 MG3 Style… Clive, who was AROnline’s News Editor for nearly four years, stood down from that role in order to devote more time to various Motor Racing projects but still contributes articles on as regular basis as his other commitments permit.

2 Comments on "China Watch : SAIC Motor acquires a 1% stake in General Motors"

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  1. Andrew McCheyne says:

    The Chinese have yet to develop their own brands. Investing in others doesn’t help them. However, it’s good news for Western brands such as MG.

  2. General Motors is already in a strong position in these difficult times and, with this investment from China, the company should continue to be a strong venture for long time.

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