GM talking with China's FAW on CV partnership

Shanghai, February 5 (Gasgoo.com) General Motors's China division said in a statement on Thursday that it is studying the possibility of establishing a joint venture with Chinese auto giant FAW Group for producing light commercial vehicles, according to newspaper reports.

A GM China spokesman confirmed to Reuters that the two parties had registered a name with the State Administration for Industry and Commerce for a planned venture, but the whole venture is "far from complete" now.

FAW told reporters they would officially release details of the partnership two days later, the Beijing-based Jinghua newspaper said.

The newspaper cited sources as saying GM has been involved in talks with FAW on forming a partnership for more than one year. GM reportedly intended to buy stakes in Faw-Hongta Yunnan Manufacturing Co, FAW’s light commercial vehicle unit, and then forge a full-fledged partnership.

GM has been making light commercial vehicles in China through SAIC-GM-Wuling Automobile, a three-way tie-up with SAIC Motor and Liuzhou Wuling Automobile.

Faw-Hongta Yunnan Manufacturing Co was established by FAW (51%), Yunnan Hongta Group (32.93%) which is China's number one brand of tobacco, and Yunnan provincial government in 1997.

Some vehicle models built by SAIC-GM-Wuling and Faw-Hongta Yunnan are direct rivals in market.