GM paid $119 million for 1 percent stake in China joint venture: filing

Fri Feb 15, 2013 1:37pm EST

The General Motors logo is seen outside its headquarters at the Renaissance Center in Detroit, Michigan in this file photograph taken August 25, 2009. REUTERS/Jeff Kowalsky/Files

The General Motors logo is seen outside its headquarters at the Renaissance Center in Detroit, Michigan in this file photograph taken August 25, 2009.

Credit: Reuters/Jeff Kowalsky/Files

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(Reuters) - General Motors Co (GM.N) paid $119 million in September to buy back a 1 percent stake in its joint venture with its top Chinese partner SAIC Motor Corp (600104.SS), which it had given up ahead of its 2009 bankruptcy.

The deal pushed GM's ownership in Shanghai GM back to 50 percent, the U.S. automaker disclosed in a filing with the U.S. Securities and Exchange Commission on Friday. However, SAIC retains a 51 percent share in the sales side of the business.

In the run-up to its 2009 bankruptcy filing, GM sold the 1 percent share to SAIC for $85 million.

On Thursday, GM Chief Financial officer Dan Ammann told reporters that the Detroit company had completed the repurchase of the 1 percent stake in Shanghai GM and the Chinese government approved the purchase last year.

(Reporting By Ben Klayman in Detroit; Editing by Gerald E. McCormick)

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Comments (2)
CountryPride wrote:
I still fail to see why we continue to allow continue unhindered access to almost every sector of our economy but in many sectors of China’s economy we are required to set up joint ventures with local companies which expose us to theft of trade secrets and minority stakes in our own business. The ignorance of our politicians in America is amazing, it’s no wonder we ran an all time record breaking $295 billion trade deficit with China last year.

Feb 15, 2013 11:42pm EST  --  Report as abuse
tmc wrote:
I think, @CountryPride, the original intent was to make consumers out of them. We have a growth based economy and it was identify many decades ago that the American and European markets would be saturated. Richard Nixon opened the door to China with that original idea in mind. Of course things have change a bit since then, but our growth based economic system has not. The saturation did occur, but the new markets were not opened up to us. it was not intended to be that way but other unknown, and unpredicted forces joined in called automation and globalization. As the markets opened up and new consumers were created, the new forces pushed the manufacturing out of the high wage countries, namely ours. Also, when President Nixon went to China, the world was a very simple place where all countries were either controlled by the Soviet Union or by the US. During that time period thinking that the Chinese would have the nads to say no to us for any reason was just unthinkable. That changed too. We cannot threaten all countries to comply with our economic needs anymore.

Feb 16, 2013 9:41am EST  --  Report as abuse
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