New GM-SAIC JV targets expansion in India

China’s Shanghai Automotive Industry Corp. (SAIC) and General Motors (GM) signed an agreement to extend their joint venture (JV) and cooperation in Asia to include model-sharing and manufacturing facilities in India. The Indian JV will see the creation of a new 50-50 investment company, called General Motors SAIC Investment Ltd., based in Hong Kong, and aimed at facilitating the companies’ expansion efforts, GM said in a statement. The new JV is expected to be set up as early as the first quarter of 2010 and will build some of the smaller models currently made by Shanghai GM and mini-commercial vehicles from SAIC-GM-Wuling. Nick Reilly, head of GM’s international operations, said that GM will contribute about US$300 to 350 million in assets to the US$650 million JV, although its existing manufacturing plants in India will be valued as part of this investment. (December 8, 2009)