LIUZHOU, Guangxi – GM will increase its stake at its microvan joint venture SAIC-GM-Wuling from 34 percent to 44 percent, according to an announcement from GM on January 21.
GM will pay $51 million for 10 percent stake from its partner Wuling, and promises to supply the tripartite JV with automotive technology service until 2013. GM’s plan for investment increase in the JV has already been approved by the local government, said GM.
When the transaction is completed, Wuling’s stake will drop to 5.9 percent and SAIC Motor will remain the company’s largest shareholder by holding 50.1 percent of the stake.
SAIC-GM-Wuling sold a total of 1.23 million vehicles in 2010, ranking No. 1 as a single company in terms of sales for the four consecutive years.