Shanghai, February 13 (Gasgoo.com) China's FAW Group and US auto giant General Motors, now in talks to form a partnership, are expected to announce their 50:50 joint venture plan in a week, Nanfang Daily reported, citing sources of FAW.
"GM China and FAW have basically reached a consensus to form a light commercial vehicle joint venture," a GM China official confirmed, but declined to elaborate.
The new joint venture is named FAW GM Light Commercial Vehicles Co., disclosed by a notice released by China's State Administration for Industry and Commerce on January 20. But according to the FAW official, it is only a working name of the JV and a lot of formalities have to be gone through.
The two automakers have made significant progress in cooperation talks and will release the detail within a week, FAW sources said to reporters.
GM and FAW will hold 50% stocks of the joint venture respectively. To be headquartered in Changchun, the joint venture also has two production bases located in Yunnan and Harbin.
