Manufacturing News

SAIC Board OKs Sale of 1% JV Stake to GM

Shanghai Automotive Industry Corp. said it has approved selling back to General Motors Co. 1 percent ownership in their joint venture for $91.4 million (580 million yuan).

SAIC disclosed terms of the deal, which included yearly interest of 4.86 percent, Friday on the Shanghai Stock Exchange Website. SAIC's board approved the transfer on May 24, said GM spokeswoman Lori Arpin.

The deal, which still requires Chinese government approval, restores GM's ability to have equal say on operational decisions in China, three years after it ceded control of the venture by selling a 1 percent stake for $85 million.

GM, which sold more vehicles worldwide than any other carmaker last year, wants to double deliveries in China to 5 million vehicles by 2015.

The two partners said in April they were close to a deal involving the split of Shanghai GM into two units. Both partners would hold equal stakes in the operations unit, while SAIC retains a 51 percent majority in the sales arm.

That would allow the Chinese company to include the venture's revenue in its financial statements, the companies said in April.

Deeper ties
Morgan Stanley analyst Adam Jonas said at the time that GM's ability to regain equal control of the joint venture would be an "extremely important" development to help GM roll out global platforms and coordinate product strategy.

The deal also would pave the way for the two partners to deepen ties and enhance GM management's credibility, Jonas wrote in an April 19 report.

GM, whose first-quarter profit slid 61 percent as losses at its European unit widened, increased deliveries in China 9.4
percent to 972,369 vehicles during the first four months of the year.

The partnership began with equal ownership between the two companies. In 2009, GM sold its stake in Shanghai GM as the Detroit-based parent underwent bankruptcy reorganization in the United States.

Most Viewed in 24 Hours


Start a Digital Twin Journey from Engineering Simulation

Accenture releases survey of digital transformation

CIMC Reduces Unplanned Downtime by 30% with Greater Operational Insight from ThingWorx

Ansys Simulation Speeding up Autonomous Vehicles

  • Tel : 0086-27-87592219
  • Email :
  • Add: 3B1 International Business Center, No. 18 Jinronggang Road (No.4), East Lake High-tech Development Zone, Wuhan, Hubei, PRC. 430223
  • ICP Business License: 鄂B2-20030029-9
  • Copyright © e-works All Rights Reserved