If the current trend continues General Motors will soon be selling more cars in China than in the U.S.
In other words, the Chinese market will be potentially more important and lucrative to GM than the domestic market.
But now Reuters is reporting that General Motors plans to soon announce that it will sell a majority stake in its Chinese and Indian operations to it Chinese partner SAIC Motor Corp:
"Sources with knowledge of the situation said
on Thursday that GM was soon expected to announce a deal to sell 1
percent of its 50-50 China joint venture to SAIC, China's biggest
automaker, and to transfer half of GM's India operations to the Chinese
The deals would give GM an infusion of cash as it restructures after
emerging from bankruptcy in July, while reshaping its profile in two of
the world's fastest growing auto markets," according to Reuters.
If the report is confirmed GM is potential mortgage its future profits in China and India for immediate and much needed cash today.
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