GM increases its 10% stake in SAIC-GM-Wuling

The reporter learned from General Motors and SAIC-GM-Wuling yesterday that the Wuling Group has already transferred 10% of SAIC-GM-Wuling shares to General Motors. As a condition of exchange, Wuling Motors will also receive generic vehicle model technology input resources after receiving a transfer fund from General Motors.

Relevant person in charge of GM China told the reporter that the increase in holdings has actually been carried out last year. At present, the delivery of equity has been completed and it has been approved by the relevant government departments. The reporter learned that General Motors will pay Wuling Group US$51 million (about 300 million yuan) in cash and provide technical services until 2013. After the equity transfer, GM’s share of SAIC-GM-Wuling’s shares increased from 34% to 44%, while Wuling’s shares fell to a nominal 5.9%. SAIC Group, the largest shareholder, remained unchanged at 50.1%. Insiders pointed out that GM, the investor of the joint venture company, will increase its controlling interest, which will help increase business development and profit sharing in the future.

Sources said that GM’s increase in the holding of SAIC-GM-Wuling is a follow-up to GM’s transfer of a 1% stake in Shanghai General Motors to SAIC. The real reason behind this is the high growth of SAIC-GM-Wuling’s recent years and the huge profit sharing it brings. This reporter learned that, as of last year, SAIC-GM-Wuling’s mini vehicle sales ranked first in the country for four consecutive years, of which 235.16 million units of General Motors sold in China last year, SAIC-GM-Wuling achieved sales of 1.23 million units, and continued to win sales from individual domestic automakers. Champion, operating income of 42 billion yuan. In addition, GM will increase Wuling’s exports to the Indian market after expanding its shareholding.