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SAIC 'to buy stake in GM'


SAIC 'to buy stake in GM'


One of China’s biggest carmakers – Shanghai Automotive – is reportedly to invest in General Motors.

GM’s shares go on sale in an initial public offering this week; currently it is majority owned by the US government after a bailout last year.

One sources said SAIC would take a one percent stake in GM if it gets approval from the Chinese Commerce Ministry.

SAIC and GM are partners in car building China and through its joint-ventures in China, GM claims a 13 percent market share in China, the largest in the industry.

Apart from further cementing their tie-up in China, SAIC was also taking part in the deal to gain access to GM’s sales networks outside China, including in Europe, one source said.

SAIC Chairman Hu Maoyuan had said previously the automaker will revive production at its UK plant and make MG cars available in Britain and the rest of the European Union in 2011 as part of its move to revive the British marque it acquired.

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