Taiwan's Yulon Motor buys out JV partner GM

Taiwan’s Yulon Motor Co. Ltd. said that it will pay NT$1 (US$0.03) for a 49% stake in the Yulon General Motors joint venture (JV) from its partner General Motors Corp. (GM), media reports said. Citing the company’s chief executive, F. J. Pan said that “Yulon General Motors needs a capital injection to cover losses and expand its business. GM is short of cash flow, and it has no capital injection plans.” After the transaction, Yulon GM will become the Taiwanese automaker’s wholly owned subsidiary, and will continue to distribute Buick, Cadillac and Opel vehicles in the island. Yulon Motor will also reportedly inject NT$210 million (US$6.35 million) into the existing distributors of the JV. (December 29, 2008)