Wally Edgar CHEVROLET -- GENERAL MOTORS Shored Up It's Global Footprint In Advance Of IPO.

Nov. 11, 2010 - PRLog -- BEIJING. Citing a U.S. regulatory filing by GM, the newspaper says the automaker will buy the additional stake from the Wuling Group for $51 million.
If approved by Chinese regulators, Shanghai Automotive Industry Corp.'s stake in the venture will remain unchanged at 50 percent, while GM would have 44 percent and Wuling would retain 6 percent.

Since 2008, GM has been negotiating with SAIC and the WULING Group for a more significant stake in the joint venture, which is based in the south China province of Guangxi.
With entry-level prices of $4,000 or so, Wuling's microvans have been strong performers in China's fast-growing market. The WULING SUNSHINE is China's most popular light commercial vehicle, with sales of 608,700 units in the first nine months, up 20 percent.

Overall, SAIC Wuling is China's top maker of commercial vehicles, with production totaling 876,900 units in the first nine months. Now, GENERAL MOTORS and SAIC want to transform Wuling into an international brand.

In February, GM and SAIC formed a 50-50 partnership to produce and sell Wuling microvans and small cars in India. The venture also exports some microvans to South America.

GENERAL MOTORS mini-vehicle venture in southern China unveiled its first own-brand sedan as it aims at the fast-growing moderately priced segment of the car market.

The sedan, called the Bao Jun or treasured horse, is the first of a series of passenger cars that SAIC-GM-Wuling plans to roll out in the near future, said its general manager, Shen Yang.

"Bao Jun is just the beginning. We will launch one new model per year carrying the same nameplate in the next few years. We will also develop SUVs and MPVs," Shen told reporters in Shanghai.
GM announced a memorandum of understanding on Nov. 3 that it will strengthen ties with SAIC to explore new fuel-efficient technologies. The two companies said they will work on electric vehicles together and seek ways to expand into emerging markets like India.

The Wuling news came in a regulatory filing as GM executives are trying to show the company's profit potential as they work to sell 365 million shares for $26 to $29 a share.

Profits in GM International Operations have declined throughout the year from $1.16 billion in the first quarter to $672 million in the second quarter, to $646 million in the third quarter.

The U.S. Treasury is selling shares to return a portion of taxpayers' $49.5 billion investment in the company. Including the repurchase of the Treasury's preferred shares after the IPO, taxpayers will have received $9.5 billion in repayments, interest and dividends from GM since the automaker emerged from bankruptcy in July 2009, according to the Treasury.

To break even, GM shares need to sell for an average of about $44 a share. The U.S. is relying on secondary offerings to fetch higher share prices than in the IPO.A GM spokeswoman, Renee Rashid-Merem, declined to comment.

SOURCE: AUTO NEWS EUROPE/CHINA

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