GM to give up control to Chinese partner in order to raise cash
4 December 2009

GM is in talks to raise cash by giving up control of its Chinese operations, according to reports.

GM operates in China in a 50-50 deal with SAIC, and is proposing to give up a one per cent share in the company - and therefore control - in exchange for cash.

Although no figure has been put on how much cash the deal would raise, analysts say it is believed to be around 20 per cent of the Chinese operations' actual worth.

Under the deal GM would also transfer half of its India operations to SAIC. However, it would have a buy back right for all the transferred shares at a later date, provided it paid a premium price.

GM's joint ventures in China sold a combined 1.46 million cars for the year up to the end of October, placing it as the top car seller in the region.

However, GM is looking to raise finances to fund its restructuring of GM Europe and to pay back its US government loans.

GM and SAIC declined to comment on a possible deal.

Twitter - follow all the latest Vauxhall reviews, news and video

Join the debate


4 December 2009

This story just can't be true. Anyone with half an ounce of sense would realise that strategically bad move.

If it is, I guess we will see more "resignations" of CEO's!



It's all about the twisties........

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Dallara Stradale
    The Stradale is the first road-legel car from Italian motorsport constructor Dallara
    First Drive
    16 March 2018
    The motorsport constructor's first road car is inspired by Lotus minimalism. Does it thrill on road and track?
  • Hyundai i30 N
    Standard spec is good so paint colour is our car’s only option
    First Drive
    16 March 2018
    What’s Hyundai’s first hot hatch and N-brand debutant really like? Let’s find out
  • Porsche Boxster GTS
    This is the new GTS version of the Porsche Boxster
    First Drive
    15 March 2018
    The 718-generation Boxster is our favourite roadster of the moment – so is this new GTS variant worth the extra outlay?
  • BMW 5 Series
    First Drive
    15 March 2018
    The BMW 5 Series is top of the mid-exec pack, but is there still room for a diesel saloon in everyday family life?
  • Audi A7 front
    First Drive
    14 March 2018
    The new Audi A7 Sportback looks the part, but how does the new Mercedes-Benz CLS rival cope on UK roads? We find out