For $85 million, General Motors Co. will sell a 1 percent stake in its existing China venture with partner SAIC Motor Corp. This sale transfers the control to SAIC and allows it to consolidate the venture’s accounts onto its balance sheet.

Aside from this, GM and SAIC have revealed that they will manufacture small cars and commercial vehicles in India, taking their 12-year partnership into one of the world’s fastest-growing auto markets. At a conference call last Friday, Nick Reilly, president of GM’s international operations, said that the company has had a “successful relationship” with them for years and that it is a “very sensible and a big opportunity” to extend that link outside China. Reilly said that the 50:50 India venture, in which SAIC will invest cash and GM will inject existing Indian assets, aims to sell 225,000 vehicles a year in the next couple of years.

[via autonews - sub. required]

Tags: car news, general motors saic, gm saic stake, saic, saic news

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