Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Chinese Version   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Automaker Email this story   Print this story
GM regains equal control of JV with SAIC
Automotive News China | 2012/4/20

SHANGHAI -- General Motors has negotiated a deal with partner Shanghai Automotive Industry Corp. that will give GM equal control of key decisions in their joint venture, The Wall Street Journal reported Wednesday.

GM has a 49 percent stake in the joint venture, Shanghai General Motors Co., while SAIC has a controlling 51 percent share.

GM CEO Dan Akerson told the Journal that the partners plan to split Shanghai GM into two units: sales and operations.

GM would have a 50 percent share of the operations unit, which would make product decisions. SAIC would retain a 51 percent share of the sales unit, which would allow the Chinese automaker to book the joint venture's revenue.

The two automakers must get approval for the deal from Shanghai's municipal authorities and the central government. Akerson told the Journal that he hopes to win approval in the "intermediate to near term."

SAIC gained control of the joint venture in 2009, when a cash-strapped GM sold a 1 percent stake for $84.5 million.

Since then, the two partners have cooperated closely on several ventures, such as the sale of microvans in India and the introduction of a Chinese entry-level car brand, Baojun.

The new agreement cements a relationship between GM and SAIC that is starting to look like a global alliance.

Related Stories
  • SAIC's 2017 net profit rises 7% behind sales growth
  •     --Published:2018/23/1
  • For GM, a big hand from outside contractors on the plant floor
  •     --Published:2018/23/1
  • GM targets China for most of its future EV sales
  •     --Published:2018/19/1
  • Domestics take lead in adding new plant capacity
  •     --Published:2018/12/1
  • SAIC's car unit starts expanding assembly plant in Zhengzhou
  •     --Published:2018/9/1
  • GM sales rise 4.4%, top 4 million in 2017 as Cadillac, Baojun shine
  •     --Published:2018/5/1
  • Global giants recover China turf with crossovers
  •     --Published:2017/22/12
  • SAIC opens 2nd assembly plant in Thailand
  •     --Published:2017/19/12
  • Thriving Baojun bodes well for GM's future in China
  •     --Published:2017/15/12
  • GM sales rise 13% in November as Baojun, Cadillac thrive
  •     --Published:2017/8/12
  • GM recalls 939,000 cars to fix faulty fuel tanks
  •     --Published:2017/5/12
  • Chevrolet to launch sporty Redline models next year
  •     --Published:2017/24/11
  • GM will meet EV quotas by 2019, China chief says
  •     --Published:2017/14/11
  • GM October sales climb 11% despite weak minibus demand
  •     --Published:2017/7/11

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     


    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
    Home | Help Center | About Us | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.