GM and SAIC’s Open Marriage

Further word from our man in Detroit about General Motors’ ambitions in China and its relationship with its joint venture partner, SAIC Motors. It is already planning to expand its dealerships in the country. Now it is hedging its bet on its international partnership with SAIC.

When that partnership was struck in 2010, it was talked up as a global one by which both companies could expand into emerging markets, though, it should be said, GM has always had internal reservations about extending what was a necessity in China in to a worldwide relationship. Nonetheless, GM dealers in some Latin America countries have been selling (a few) SAIC’s Wuling micro vans, for example, and Chinese-made Chevy Sails were exported to India and South America, and some models are being locally produced in  a GM plant there.

GM is now thinking more in terms of region-specific partners. In particular, it would work with PSA Peugeot Citroen in eastern Europe and Latin America, and SAIC just in Asian markets outside China.

SAIC and GM are discussing a manufacturing and sales joint venture in Indonesia we are told, with the intention of attacking Toyota’s 60% market share there. Yet that follows SAIC scaling back its participation in the two carmakers’ spluttering joint venture in India, and its choice of a local conglomerate, CP Group, in preference to GM as a partner in Thailand. Executives from both GM and SAIC have been quoted as describing the relationship between their companies as a marriage. It is looking increasingly like an open one.

About these ads

3 Comments

Filed under Industry

3 responses to “GM and SAIC’s Open Marriage

  1. This might spell trouble for GM in China, as these moves are not taken lightly. The reason why GM actually got involved with SAIC was after the first foreign partner of SAIC, Volkswagen, cheated in their relationship with a venture up north. SAIC then retaliated by getting GM in. For GM it might be a rational business decision, but I wonder of SAIC thinks the same.

  2. China Bystander

    You make a good point. It is noticeable that GM has been careful to say all the right things about its relationship with SAIC in China. –CB

  3. Pingback: Chapter 10 – Legal services | Great Wall of Numbers

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s