GM, FAW delay announcing partnership details

Shanghai, February 9 (Gasgoo.com) General Motors' China division and FAW Group have postponed announcement of their cooperation details planned for the weekend given that they still have to wait for government approval, the Xinhua news agency reported on Saturday.

The two parties unveiled plans last Thursday to establish a joint venture for producing light commercial vehicles and said details of the partnership will come out two days later. The announcement is now postponed as it has to go through the process of regulatory approval from the Chinese government.

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

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.

A company executive from Faw-Hongta told Guangzhou Daily today that the planned JV is forecast to be launched in March and will be based in Changchun, the headquarters of FAW Group.