General Motors said it has been given preliminary approval to establish a joint venture with mini-vehicle maker SAIC-Wuling Automobile Co. According to industry sources quoted by Reuters, the US$100m venture would involve GM giving Wuling the technology to make multi-purpose vehicles. SAIC and Wuling would together hold 66 per cent of the venture.
GM’s China spokeswoman Daphne Zheng said that many steps still needed to be taken, including a feasibility study and contract negotiations. However, she added that the mini vehicle market in China was growing fast and had huge potential.