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GM Seeks to Raise Stake in SAIC-GM-Wuling

Bloomberg. GM is seeking to increase its stake in the SAIC-GM-Wuling mini-vehicle joint venture according to Hy Maoyuan, chairman of SAIC Motor Corp., in an interview with Bloomberg.

Currently, SAIC is the majority shareholder with 50.1%, while GM owns 34% and Liuzhou Wuling Motors Co. holds the rest.

GM is seeking to boost market share in the world’s fastest- growing major economy, where the venture based in southern Guangxi province accounts for about half its local sales.

“Given the lobbying power of both SAIC and GM, the American carmaker will sooner or later get more shares,” Ricon Xia, an analyst with Daiwa Associate Holdings Ltd. in Shanghai, said today. “This venture is a vital part of GM’s China operation.”

In October, the Beijing Times reported that SAIC-GM-Wuling will begin production of mid-sized GM sedans. SAIC-GM-Wuling is currently China’s leading manufacturer of mini-vehicles, with more than 45% share of that market.



Whoa. For a company that's supposed to be out of cash - they sure are investing a lot of $$$ in new ventures. Could they be snookering us on their vast resources worldwide???



Offshore operations are about the only GM remaining revenue sources. GM's national operations are all in very deep red and may go under unless the govenment comes to the rescue.

Good management would indicate to close the loosing (USA) units and invest more in the profitable ones.

To survive, GM USA may have to become a large distribution unit with most of the production done abroard.

That's what happened to TV, Computers, phones, appliances, furniture, clothes etc and what is progressively happening to cars, trucks, trains, planes, farm and heavy equipment etc.

Business globalization works both ways. Being competitive is the only way to survive. It is the backbone of capitalism.


Which is why multi-national companies utilize cross-collateralization in global accounting. With the economic crisis tanking the emerging markets so hard - there will be little choice but to bring manufacturing back to home bases.

Of course, one must believe these scenarios in order to respond to them. So far, the scenario builders have been stumbling badly - causing an untoward consumption of Kool Aid at central office.

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