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Chinese Automaker Seeking Stake in GM

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Cars in China Topics:  General Motors, Shanghai Automotive Industry Corporation

Chinese Automaker Seeking Stake in GM

VOA Breaking News (Voice of America)
November 15, 2010 at 6:50 am

The president of China’s largest auto manufacturer has visited the United States to negotiate for a stake in General Motors, America’s top car company.

China’s SAIC Motor Corporation reportedly plans to spend about $500 million to purchase one percent of GM during an initial public offering this week. The state-controlled China Securities Journal says SAIC President Chen Hong traveled to the United States last week to finalize details of the deal.

Middle Eastern investors are also expected to buy into the IPO , which will allow the U.S. government to reduce its stake in the company from 61 percent to 43 percent and return about $13 billion to American taxpayers.

Previous Chinese attempts to purchase stakes in major U.S. companies have been controversial in the United States. But China is now the world’s largest auto market, and GM announced this year it is selling more cars in China than in the United States.

GM and SAIC already are partners in two joint ventures.

The U.S. government became a majority stakeholder in General Motors as a result of a restructuring that saved the company from bankruptcy last year.

Some information in this story was provided by AP, AFP and Reuters.

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