GM (GM) doesn’t have much going for it these days, but the Chinese market is one legitimate bright spot. In January, the China overtook the US to be the world’s biggest car market, and amazingly GM is a pretty legitimate competitor there. If you imagine a healthy GM in the future, a thriving Chinese business would be part of it. Alas, this could be the only asset it has that anyone might pay cash money for.
According to Reuters, the company has talked with SAIC Motor, the company with which it has a 50-50 JV about selling off a chunk of its stake
The discussions between GM and SAIC Motor are playing out against the backdrop of a push by GM to secure deep concessions from its bondholders and major union to show it can be made viable under the terms of a $13.4 billion U.S. government bailout.
Such a deal would make GM a minority partner at its decade-old flagship venture in China, Shanghai General Motors Ltd, considered to be one of the remaining crown jewels in its global operations.
It all sounds speculative, and we await a GM denial, but it’s certainly plausible that if the other option were bankruptcy then selling off a crown jewel could be the only option.
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