SAIC-GM-Wuling not to be affected by GM crisis

Shanghai, December 25 (Gasgoo.com) Chinese automaker SAIC GM Wuling Auto Co., Ltd. (SGMW), a Chinese joint venture of General Motors, has developed its own capabilities and will not be affected by the GM crisis, even if the U.S. partner goes bankrupt, said a top executive of the venture on Tuesday to Beijing Times. But the company will be more cautious about future investment.

Peng Wunian, newly appointed general manager of SGMW, told the Beijing newspaper that the bankruptcy crisis of GM will have little impact on its Chinese operations, even less on the SAIC-GM-Wuling venture. The SGMW venture has developed its independent "blood-making" functions and its own strong capabilities can drive its sustainable growth even if the U.S. automaker drops out of the partnership.

SGMW achieved sales of 580,000 vehicles in the first 10 months of this year and the full-year sales are expected to hit 650,000 units, exceeding the previously set target by 30,000 units and gaining near 50% market share of mini vehicles in China. The company's sales in 2009 will overtake this year's and grow faster than the national GDP growth rate, Wu said.

As the current market slump may spread to the first half of 2009, SAIC GM Wuling has become more cautious about expanding its investment. The company has no plan yet to invest further next year. The Wall Street Journal reported Nov. 12 that GM was in talks to increase its stake in the Chinese joint venture SAIC GM Wuling.

SAIC-GM-Wuling manufactures a range of Wuling brand mini-trucks and minivans as well as the Chevrolet Spark and other GM mini models. In early August, the joint venture began exporting the Chevrolet N200 minivan from China to Peru.

As one of the leading mini-vehicle manufacturers in China, SAIC GM Wuling is a joint venture established in 2002 by three partners, with GM China holding a 34% stake in the venture, SAIC 50.1% and Wuling Motors 15.9%.