GM forges China JVs

General Motors Corp. (GM) is strengthening its hold on the auto market by forging bonds with Chinese car companies. The company will reveal the details of a pending agreement with Harbin Light-duty Truck Factory, a subsidiary of the China FAW Group Corp., in May. GM has existing joint ventures with the SAIC Motor Corp.—Shanghai GM Ltd., its flagship JV, and another in Shenyang, Liaoning province in northeast China. GM dispelled rumors in February that it was planning to sell part of its 50% stake in Shanghai GM, and showed it will continue its operations in China by investing RMB2.67 billion (US$391.16 million) in its Shenyang operation with SAIC, which is set to begin full production of Chevrolet Cruze compacts in the second quarter of 2009. SAIC, meanwhile, also inked an agreement with Italian auto supplier Magneti Marelli S.p.A. to set up a joint venture (JV) for the production of hydraulic components for Magneti Marelli’s Freechoice automated manual transmission. It is scheduled to be operational mid-2009. (February 2/3/6/13, 2009)