GM increases stake in Indian arm to 93%
17 Oct 2012 12:56 AM GMT
US car major General Motors Co [GM] has increased the stake in its Indian operations to 93 per cent by buying 43 per cent from its Chinese partner, Shanghai Automotive Industry Corporation Group, for an undisclosed sum.
'The increase in shareholding in the Indian arm by General Motors is a reflection of the confidence that the company has here and in the long term potential of the country,' General Motors India President and Managing Director [MD] Lowell C Paddock told PTI. He, however, declined to comment on the financial details of the transaction.
In December 2009, Shanghai Automotive Industry Corporation Group [SAIC] and General Motors Company had announced expansion of their cooperation in Asia and formed a 50-50 joint venture investment company.
As a result of it, SAIC took 50 per cent stake in General Motors India, which became an equal joint venture between the Chinese automaker and the American automotive giant. Following this, GM India announced plans to launch a series of vehicles using platforms of the Chinese automaker. The first of them will be the hatchback Sail, which will be launched next month, followed by the sedan version of the car along with multi-purpose vehicle Enjoy later in December.
Asked if the change in the stake-holding would hit future product pipeline based on SAIC platform, Paddock said, 'The relationship will continue to strengthen as GM-SAIC still continues in other Asian market, we will continue to have access to a variety of products.'
Earlier in the past, GM India had said it was looking at launching about three models of LCVs from the SAIC platform in India and would also export the vehicles to other markets.
'The increase in shareholding in the Indian arm by General Motors is a reflection of the confidence that the company has here and in the long term potential of the country,' General Motors India President and Managing Director [MD] Lowell C Paddock told PTI. He, however, declined to comment on the financial details of the transaction.
In December 2009, Shanghai Automotive Industry Corporation Group [SAIC] and General Motors Company had announced expansion of their cooperation in Asia and formed a 50-50 joint venture investment company.
As a result of it, SAIC took 50 per cent stake in General Motors India, which became an equal joint venture between the Chinese automaker and the American automotive giant. Following this, GM India announced plans to launch a series of vehicles using platforms of the Chinese automaker. The first of them will be the hatchback Sail, which will be launched next month, followed by the sedan version of the car along with multi-purpose vehicle Enjoy later in December.
Asked if the change in the stake-holding would hit future product pipeline based on SAIC platform, Paddock said, 'The relationship will continue to strengthen as GM-SAIC still continues in other Asian market, we will continue to have access to a variety of products.'
Earlier in the past, GM India had said it was looking at launching about three models of LCVs from the SAIC platform in India and would also export the vehicles to other markets.
Next Story
