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China's SAIC to buy stake in GM India?

5th Oct 2009 7:00 am

Rumours are flying thick and fast in the Chinese media that Shanghai Automotive Industry Corporation has bought a controlling stake in GM India's Talegaon plant and is the biggest shareholder of this greenfield facility which can produce 140,000 units per annum.

Rumours are flying thick and fast in the Chinese media that Shanghai Automotive Industry Corporation has bought a controlling stake in GM India's Talegaon plant and is the biggest shareholder of this greenfield facility which can produce 140,000 units per annum.

According to company sources, SAIC has just finished formalities if this deal and a public announcement can be expected soon. SAIC, which partnered with GM to form Shanghai GM, SAIC-GM-Wuling Automobile and the Pan-Asia Technical Automotive Center. SAIC also partnered the VW Group in the formation of the Shanghai Volkswagen Automotive, has several subsidiaries and makes a wide range of products from commercial vehicles to mini-cars.

By joining hands with GM India, SAIC has immediate access to the Indian market for its products. According to sources, the first model to come out of the Talegaon plant from the new shareholders will be the SAIC-GM-Wuling mini-car. There are several other projects being evaluated which include a wide range of models from China, but nothing has been confirmed. GM India is silent on the subject.

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