GM seeking 10.9% more stake in Wuling JV

Shanghai, December 23 (Gasgoo.com) General Motors is seeking to buy an additional 10.9% stake in SAIC-GM-Wuling (SGMW), its mini-commercial vehicle venture in China, China Daily reported today, citing a top executive of GM's Chinese partner SAIC.

SAIC-GM-Wuling Automobile Co. is a three-way joint venture between SAIC (holding 50.1% share), GM (34%) and Wuling Motors (15.9%). SAIC Motor president Chen Hong yesterday said his company would retain its 50.1% stake and wouldn't alter its holdings in the minivan JV, China's current sales champion in this sector.

GM was in talks with Wuling Motors' owner, the Guangxi provincial government, to buy an additional 10.9% stake from Guangxi's shareholder to boost GM's holding in SAIC-GM-Wuling to 44.9% from the current 34%, Chen said, adding that SAIC backs this move by GM.

By December 15, SAIC-GM-Wuling had sold a total of 1.0264 million vehicles this year, up 57. 8%, becoming the first automaker in China to hit the 1 million sales mark in a single calendar year and meanwhile a newcomer to the Chinese auto industry's "1-million-unit club."

In the first 11 months, the venture delivered more than 980,000 vehicles to customers, compared with 647,296 units in 2008. It is on track to remain China's mini-commercial vehicle sales leader for a fourth consecutive year.

Set up in 2002 in Liuzhou, in southwestern Guangxi province, SAIC-GM-Wuling makes a range of Wuling brand mini-trucks and minivans as well as the Chevrolet Spark mini-car. It has a second manufacturing base in Qingdao, Shandong province.