After a week of speculation, the chairman of Shanghai Automotive Industry Corp. has confirmed that General Motors Corp. is planning to increase its 34% stake in a JV co-owned by SAIC and Wuling Automobile. That's according to a report in Thursday's China Business News.
Another report said SAIC-GM-Wuling Automobile, with 548,945 vehicles sold in China last year, is one of its star performers. And that GM has eight JVs and two wholly owned companies in China, employing more than 20,000 people. Financial terms of the possible deal were not given and the struggling GM didn't say how such a deal would be financed as it seeks government money.
The Deal's Lou Whiteman had this to say about the bailout debate: In short, the debate boils down to whether lawmakers really believe General Motors has come to grips with its problems and has a sound, realistic plan in place that can transform the company into a profitable enterprise. Whiteman says the ongoing discussion of all of the automaker's misfires over the years, while justifiable, is besides the point.
Gasgoo: auto parts source
