UPDATE:GM:China Businesses Unaffected By US Bankruptcy Filing
June 01 2009 - 12:42PM
Dow Jones News
General Motors Corp.'s (GM) China operations won't be affected
by its bankruptcy filing in the U.S., the automaker said in a
statement Monday.
"Our operations across China will operate normally," said Kevin
Wale, president and managing director of the GM China Group, in a
statement.
"Our customers will continue to receive top-notch service and
warranty coverage, while our dealers will continue to receive
product and aftersales parts as usual. There will be no impact on
payments to employees, dealers or suppliers contracted to GM China
or to our joint ventures."
GM's sales in China in the January-May period rose 33.8% on
year, the statement said, without giving unit sales figures.
Industry-wide sales in China in the first five months rose 18.8% on
year, GM said in the statement.
GM operates two vehicle-making joint ventures in China with SAIC
Motor Corp. (600104.SH) and Wuling Automobile Co. Sales in China
have been a bright spot for the U.S. automaker, while sales in its
home country have plummeted amid the financial crisis.
GM's Asia-Pacific president, Nick Reilly, said in April that the
company's operations in the region are "self-sufficient," and don't
need any of the government loan money the parent is receiving in
the U.S.
GM and China FAW Group Corp. said in February they are exploring
a potential partnership, and people familiar with the situation
told the Wall Street Journal in November that the U.S. automaker
hoped to boost its 34% stake in SAIC-GM-Wuling Automobile Co.
SAIC Motor Corp. said separately Monday it doesn't expect GM's
bankruptcy filing in the U.S. to have a substantive impact on the
companies' vehicle-making joint ventures in China.
GM's equity, assets, brands and technology in China will be
included in the "New GM" when the U.S. automaker exits from
bankruptcy protection, said SAIC, China's largest automaker by
sales.
"SAIC has the confidence and the strength to unwaveringly
support the joint ventures' healthy and stable development," the
company said in a statement.
-By Patricia Jiayi Ho, Dow Jones Newswires; (8610)6588-5848;
patricia.ho@dowjones.com