General Motors Company (NYSE:GM) has scotched all rumors of a rift with its JV partner in China SAIC Motor Corp, and has said that their venture is growing stronger day by day and the two partners were discussing another partnership in Indonesia.
The rumors were sparked off by moves of SAIC Motor Corp to start independent operations outside China was seen by experts as a step of rift between the 2 partners. The move was described by GMs top executive in China as the coming of age of a state run company.
Both GM China Chairman Tim Lee and GM China President Bob Socia have said that sales of GM’s JV with SAIC is expected to grow to grow by 300,000 to 3 million vehicles this year. Half of these sales would come .from the no frill minivan that GM manufactures in a JV with SAIC and another partner.
According to the two GM bosses, GM Has plans to launch a few new or some redesigned cars in the Chinese market next year. There are further plans to increase exports of cars that are designed and manufactured jointly in China. To meet the growing demand the two companies are rushing forward to start new factories, two in the countries rich east coast and the other 2 will be started in the Midwest part of China. The 4 plants will add an extra 1 million cars to the GMs production capacity from the country.
Lee who also holds the post of the company’s global manufacturing boss has given up his global post recently to concentrate on China. He said, “The Company’s board and Chairman have concluded that the Chinese market is important to the company and I should focus only on it.”
