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General Motors Co. is in the final stage of talks to sell equity to Chinese partner SAIC Motor Corp. as part of its landmark initial public offering, two people familiar with the matter said.

The two government-funded automakers are currently finalizing how much of a stake SAIC would buy in the top U.S. automaker after discussions involving technology sharing and SAIC's ambitions to move beyond the China market, the people said.

Any agreement between GM and SAIC would need Chinese government approval and could still fall apart, the people cautioned.
GM is set to price its roughly $13 billion IPO on Nov. 17 and start trading the next day.

Its executives and bankers are courting investors, including overseas sovereign wealth funds expected to buy nearly $2 billion worth of shares, sources previously told Reuters. GM and its bankers have not set a maximum value for investment by sovereign wealth funds, one source said on Wednesday.

EXPANDING TIES

The potential investment in GM by China's top automaker would expand a 13-year old joint-venture in China and their newly established relationship in India to a broader global stage.

Analysts said the closer ties with SAIC would underscore GM's leading position in the world's biggest and fastest-growing car market, China.

But the deal also carries risks since it involves a sale of a stake in a company bailed out by U.S taxpayers in 2009 to a state-funded Chinese automaker and could face political scrutiny in Washington.

SAIC is keen to have access to GM's technology and eventually expand beyond its home market and sell vehicles abroad, the people said.

One person familiar with the matter said previously that SAIC had initially reached out to GM to explore the prospect of taking a "single-digit" stake in GM. The size of SAIC's prospective investment was not known as of Wednesday.

The final round of talks has been led by SAIC Vice Chairman Chen Hong and could conclude as soon as the weekend, that source said.

The people were not authorized to speak with the media and declined to be named because the talks are private.

This would not be SAIC's first overseas foray. The carmaker stumbled a few years ago when it bought control of South Korean carmaker Ssangyong, only to see it go bankrupt.

Representatives for GM and SAIC declined to comment.

The U.S. Treasury, which owns 61 percent of GM's common stock as a result of its $50 billion U.S. taxpayer-funded bailout, is expected to cut its stake to just over 40 percent in the IPO.

The Treasury has said that IPO investors would be sought across "multiple geographies with a focus on North American investors" but it would not be involved in discussions about how shares are allocated.

While selling a big chunk of shares to overseas state-backed investors such as SAIC could trigger a political backlash, GM's advisers and underwriters have argued those investors could help provide long-term stability to the price of GM's stock.

One of GM management's key pitches for investors during the roadshow is the automaker's strong position in China and other emerging markets. It has a 13 percent share in four key emerging markets — China, Brazil, India and Russia — which are expected to account for 45 percent of global sales growth through 2014, according to IHS Automotive.

GM's closest rival Volkswagen AG has market share in those emerging markets of just under 10 percent.

"To have investors from those regions in the company is just straight-out smart," said Van Conway, a turnaround specialist at Conway MacKenzie based in Birmingham, Michigan. "It is a worldwide organization. You want them to be successful in all of the continents. That is one of GM's strengths."

Marvin Zhu, senior market analyst with J.D. Power Asia Pacific, said a new equity tie between SAIC and GM would bring their already very successful partnership to the next level.

"It also shows SAIC's commitment to the partnership and would help it win more support from GM on the technology side," Zhu said.

"I think it's premature for SAIC to enter the North America market at the moment, but a closer tie would no doubt help it gain access to other emerging markets where there is demand for SAIC's products."

The two automakers announced last week they would jointly develop more clean energy vehicles and components, including the development of a next-generation electric vehicle design.

In a sign of continuing progress in GM's turnaround after bankruptcy restructuring, GM also posted a $2 billion third-quarter profit on Wednesday.
 

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3 Yugo's?
:laughing: Basically, 3 $40k Yugo's. In fact, I expect to once again have to jump start the 07 (just like I have every 3 or 4 days since it came off the lot) this morning.. 5 batteries, 2 body control modules, 53 days in Chevy store.. most of the dash shorted out and no working power points all by 38k miles. GM told me to FO, so I spread the story to anyone who will listen. Don't buy commie cars..
 

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I read that Buicks are the most popular car in China among the young up-and-coming yuppies in the business centers. Go figure. In the U.S., only the grey hairs want them. In China it's the yuppies. What's next, Buicks with hydraulics? :crazy:
 

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General Motors Co. is in the final stage of talks to sell equity to Chinese partner SAIC Motor Corp. as part of its landmark initial public offering, two people familiar with the matter said.

The two government-funded automakers are currently finalizing how much of a stake SAIC would buy in the top U.S. automaker after discussions involving technology sharing and SAIC's ambitions to move beyond the China market, the people said.

Any agreement between GM and SAIC would need Chinese government approval and could still fall apart, the people cautioned.
GM is set to price its roughly $13 billion IPO on Nov. 17 and start trading the next day.

Its executives and bankers are courting investors, including overseas sovereign wealth funds expected to buy nearly $2 billion worth of shares, sources previously told Reuters. GM and its bankers have not set a maximum value for investment by sovereign wealth funds, one source said on Wednesday.

EXPANDING TIES

The potential investment in GM by China's top automaker would expand a 13-year old joint-venture in China and their newly established relationship in India to a broader global stage.

Analysts said the closer ties with SAIC would underscore GM's leading position in the world's biggest and fastest-growing car market, China.

But the deal also carries risks since it involves a sale of a stake in a company bailed out by U.S taxpayers in 2009 to a state-funded Chinese automaker and could face political scrutiny in Washington.

SAIC is keen to have access to GM's technology and eventually expand beyond its home market and sell vehicles abroad, the people said.

One person familiar with the matter said previously that SAIC had initially reached out to GM to explore the prospect of taking a "single-digit" stake in GM. The size of SAIC's prospective investment was not known as of Wednesday.

The final round of talks has been led by SAIC Vice Chairman Chen Hong and could conclude as soon as the weekend, that source said.

The people were not authorized to speak with the media and declined to be named because the talks are private.

This would not be SAIC's first overseas foray. The carmaker stumbled a few years ago when it bought control of South Korean carmaker Ssangyong, only to see it go bankrupt.

Representatives for GM and SAIC declined to comment.

The U.S. Treasury, which owns 61 percent of GM's common stock as a result of its $50 billion U.S. taxpayer-funded bailout, is expected to cut its stake to just over 40 percent in the IPO.

The Treasury has said that IPO investors would be sought across "multiple geographies with a focus on North American investors" but it would not be involved in discussions about how shares are allocated.

While selling a big chunk of shares to overseas state-backed investors such as SAIC could trigger a political backlash, GM's advisers and underwriters have argued those investors could help provide long-term stability to the price of GM's stock.

One of GM management's key pitches for investors during the roadshow is the automaker's strong position in China and other emerging markets. It has a 13 percent share in four key emerging markets — China, Brazil, India and Russia — which are expected to account for 45 percent of global sales growth through 2014, according to IHS Automotive.

GM's closest rival Volkswagen AG has market share in those emerging markets of just under 10 percent.

"To have investors from those regions in the company is just straight-out smart," said Van Conway, a turnaround specialist at Conway MacKenzie based in Birmingham, Michigan. "It is a worldwide organization. You want them to be successful in all of the continents. That is one of GM's strengths."

Marvin Zhu, senior market analyst with J.D. Power Asia Pacific, said a new equity tie between SAIC and GM would bring their already very successful partnership to the next level.

"It also shows SAIC's commitment to the partnership and would help it win more support from GM on the technology side," Zhu said.

"I think it's premature for SAIC to enter the North America market at the moment, but a closer tie would no doubt help it gain access to other emerging markets where there is demand for SAIC's products."

The two automakers announced last week they would jointly develop more clean energy vehicles and components, including the development of a next-generation electric vehicle design.

In a sign of continuing progress in GM's turnaround after bankruptcy restructuring, GM also posted a $2 billion third-quarter profit on Wednesday.
Nothing parties like a rental/oversea investors cash....:laughing:
This was inevitable after the hummer sale...


Double edged sword here.
less heat on the govt and gm....complacentcy probability higher.....GM should be under more pressure....not less.....
 

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I read that Buicks are the most popular car in China among the young up-and-coming yuppies in the business centers. Go figure. In the U.S., only the grey hairs want them. In China it's the yuppies. What's next, Buicks with hydraulics? :crazy:
Interestingly enough,

there are striking similarities between the Buick suvs and China's suv's in appearance.

They are not following Germany's or Japan's popular designs.







We may have a new global design lead for a little while like we did during the jellybean auto days, started by Ford.
 

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I read that Buicks are the most popular car in China among the young up-and-coming yuppies in the business centers. Go figure.
:agree: It's what saved the brand from the car czar dipshit.
In the U.S., only the grey hairs want them. In China it's the yuppies.
:laughing: In Florida we have 'blue-hairs'. I'm not there yet, I'm only gray. :cheers:
What's next, Buicks with hydraulics? :crazy:
I wouldn't mind driving this!


...however, here ya go!
 

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Discussion Starter #9
I Dig the new Buick line.
 

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DEAL: China to buy stake in GM

General Motors Co [GM.UL] is in the final stage of talks to sell equity to long-time Chinese partner SAIC Motor Corp (600104.SS) in conjunction with its landmark initial public offering, two people familiar with the matter said. The two government-funded automakers are currently finalizing how much of a stake SAIC would buy in the top U.S. automaker after discussions involving technology sharing and SAIC's ambitions to move beyond the China market, the sources said. Any agreement between GM and SAIC would need Chinese government approval and could still fall apart, the sources cautioned.
-------------------------------------------------------

All I want to know: Is there government funding to learn CHINESE? :lookinup:
 

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...
All I want to know: Is there government funding to learn CHINESE? :lookinup:
You'd better hurry. Pretty soon the dollar won't hold much water against the yuan and it will be too expensive.
 

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I see outsourcing and trade with Asia is working 100%

Now the Communist own a large part of American industry

I personally will never buy another New GM product again.

And I promised myself I will never Spend more than 20k on anything made by GM in the used market.

The people of Gemeral motors are 'Just Plain Bad Americans" untrust worthy and Disloyal

Between Begging for "Bailout Money", Building the 2010 Camaro in Oshwa Canada, Going south of the border to manufacture and assemble cars in Mexico,

And now selling out to the Communist in China,

Your all a bunch of Crooks and traitors:nuts:

And now all America knows it to be fact,

You can kiss your Ass'es all GoodBye !

Because us Americans are taking notes a "Vow to Never Forget"

Bon
 

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3,516 Posts
I see outsourcing and trade with Asia is working 100%

It permits a Communist takeover which is where America is headed anyway :devil:

Now the Communist own a large part of American industry

I personally will never buy another New GM product again.

And I promised myself I will never Spend more than 20k on anything made by GM in the used market.

The people of Gemeral motors are 'Just Plain Bad Americans" untrust worthy and Disloyal

Between Begging for "Bailout Money", Building the 2010 Camaro in Oshwa Canada, Going south of the border to manufacture and assemble cars in Mexico,

And now selling out to the Communist in China,

Your all a bunch of Crooks and traitors:nuts:

And now all America knows it to be fact,

You can kiss your Ass'es all GoodBye !:nuts:

Because us Americans are taking notes a "Vow to Never Forget"

Bon
 
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