SAIC set to participate in management of GM India

Shanghai, April 15 (Gasgoo.com) China's biggest automaker Shanghai Automotive Industry Corporation (SAIC),  the Chinese joint venture partner of General Motors, will take part in the management of GM's India operations, media reported today.

Board members of General Motors India will be reelected, with the appointment of some senior positions to be decided by the Chinese auto giant. The current board of GM India is formed by top executives from General Motors. In the days ahead, its board members will come from both GM and SAIC.

Karl Slym, president and operating director of the Indian branch of General Motors, will still be responsible for the operation of General Motors India, which will go on as usual. SAIC personnel began to join the GM India team from April 1st, India's TopNews said earlier.

In December 2009, GM entered into a 50:50 joint venture with SAIC to manufacture cars for both the Indian and export markets, selling 50% of its Indian operations to SAIC for $500 million. SAIC hopes more say in GM India than only playing a role as shareholders.

SAIC and GM operate a series of joint ventures in China, including Shanghai GM and SAIC-GM-Wuling. As a big step to expand their partnership into other markets, both sides set up the new venture in Hong Kong at the end of last year to run GM India jointly.

SAIC expects its India joint venture with GM to generate profits within three years by selling low-cost small cars. India will see annual car sales more than double to 5 million units by 2015, to become SAIC's most important market outside China.