GM acquires SAIC joint venture stake

China’s auto producer Shanghai Automotive Industry Corp (SAIC) sold a 1% share holding in a Chinese joint venture to General Motors (GM; GM.NYSE) for US$119 million in September, The Wall Street Journal reported. GM’s share re-purchase means the US car maker and SAIC each hold equal proportions of the car making and sales joint venture, GM said on Friday in a regulatory filing. The move comes after SAIC sold a 1% stake in the joint venture to GM in 2009, handing over majority control to the Chinese firm, in return for US$84.5 million in cash and a US$400 million loan. At the time, GM was attempting to avoid insolvency.