SAIC president expresses confidence in prospects of new GM

Shanghai, July 9 (Gasgoo.com) President of Shanghai Automotive Industry Corporation (SAIC) said on Wednesday that he has a lot of confidence in the future of the "New GM", the first time for SAIC to make public comment on the matter since GM filed for Chapter 11 bankruptcy protection on June 1, the Shanghai Securities News reports.

Hu Maoyuan said he had met with GM's president Fritz Henderson in late May and the two executives agreed at the time that filing for bankruptcy was the most effective way for GM to survive and restructure itself.

The 100 year-old U.S. company has been given approval by the US courts on Sunday to transfer its assets into the new GM, while non-performing brands and assets will be left behind, packaged up and sold to the highest bidder.

Hu said "in future the new GM will concentrate its resources on the development of four core brands, including its Chevrolet, Cadillac, GMC and Buick. Shanghai GM is poised to benefit from this strategy shift as most of the vehicles produced at GM's Chinese joint venture are belong to these brands".

GM China Group President and Managing Director Kevin Wale said in a statement on Monday that "the launch of the new GM will have a positive impact on GM's operations across China as it enables them to continue to introduce new products and expand presence in the market".