By Tian Ying
Nov. 9 (Bloomberg) -- General Motors Corp., the biggest overseas automaker in China, is talking with its local partner about increasing its stake in a van venture in southern China, according to the venture's majority shareholder.
GM wants to boost its stake in SAIC-GM-Wuling Automobile Co. by acquiring some shares from its local partner in the southern Guangxi province, Hu Maoyuan, chairman of SAIC Motor Corp., said yesterday in an interview in Tianjin. SAIC is the majority shareholder of the venture with 50.1 percent. GM owns 34 percent and the rest is held by Liuzhou Wuling Motors Co.
GM, which receives about half of its China sales from the van venture, is trying to boost its market share in China. GM said last week that it may not have enough cash to keep operating this year after reporting a $4.2 billion third-quarter operating loss.
``GM and our partner in Guangxi are still discussing how to settle the share transfer,'' Hu said. ``We won't give up any of our stake.'' Hu didn't provide details about what size stake GM may be seeking.
GM sold 1.03 million vehicles in China last year, about 11 percent of its global total. The company is the biggest overseas automaker in the country in terms of overall sales. Total nine- month sales at its Chinese ventures rose 9.3 percent to 785,144, according to Bloomberg calculations.
To contact the reporter on this story: Tian Ying in Beijing on ytian@bloomberg.net
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