Shanghai Automotive Industry Corp has agreed to sell a 1% ownership stake of its joint venture with General Motors for CNY 580 million ($91.4 million), thereby restoring the American motor giant’s equal say in the JVs China operations. SAIC announced the deal on the Shanghai Stock Exchange website, although government approval is still pending.
Regaining the 1% stake will be extremely important to GM in the future and will allow them to better coordinate global strategy, at the same time strengthening ties between the Chinese and American companies.
While GM sold more vehicles worldwide than any other company last year, first-quarter profits slid by 61% as the Euro crisis continued to deepen. China deliveries during the first four months of the year were up 9.4%, however, to 972,369 vehicles.
Published 25th June, 2012
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