SAIC Motor Corp (600104.SH) plans to buy US$4.37 in assets from its state-owned parent in order to boost core competitiveness, the Wall Street Journal reported. Assets to be transferred from Shanghai Automotive Industry Corp to the listed subsidiary include: a 60.1% stake in Huayu Automotive Systems, an auto-parts manufacturer; wholly owned units in the US and Hong Kong; a 6.01% holding in GM Korea; and stakes in new-energy car manufacturers and trade and investment firms. SAIC will fund the purchases by issuing 1.73 billion in new shares at RMB16.53 (US$2.53) per share to its parent in a private placement. This would take Shanghai Automotive Industry’s stake in SAIC to 77.21% from 72.95%. SAIC is China’s largest auto maker by sales and has manufacturing joint ventures with General Motors (GM.NYSE, GMM.U.TSX) and Volkswagen (VOW.FWB). In 2010, it sold 3.58 million vehicles, up 31% year-on-year.