December 03, 2008
Chinese Car Maker to Buy GM?
According to a blog at the Wall Street Journal, GM is shopping itself to its Chinese partner Shanghai Automotive Industry Corp. (SAIC). Other rumours circulate that Hong Kong listed Chinese car maker Dongfeng may be interested in buying GM. An outright takeover is highly unlikely due to GM retiree's entitlements and Congressional xenophobia but a sale of assets such as Buick is possible. Buick began assembling cars in Shanghai back in 1928 and was one of the first American brands to reenter the Chinese market.
As it stands, GM's China operations are able to fund themselves as they are profitable and the only growth area in the company. GM's joint venture in Shenyang is expanding production to 150,000/year -- not far off the entire monthly production of GM vehicles in the USA.
GM will sell the Chevrolet Cruze next in China and plans to introduce 10 new models by 2010. One way or another GM is turning Chinese.
Labels: automobiles, gm, panic of 2008
# posted by Sinomania! : 12/03/2008 02:56:00 PM
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