GM increases stake in Indian unit
U.S. automaker General Motors Corp. (GMC) has increased its stake in its Indian operations to 93%, by buying 43% from its Chinese partner Shanghai Automotive Industry Corporation Group (SAIC) for an undisclosed sum.
“The increase in shareholding in the Indian arm by GM is a reflection of the confidence that the company has here and in the long term potential of the country,” said GM India President and Managing Director Lowell C. Paddock.
GM had to sell a 50% stake in the Indian unit to SAIC ahead of a 2009 bankruptcy filing. The deal, valued at 23.5 billion rupees (US$444.8 million), was part of GM’s efforts to revive the company. As a result, SAIC took a 50% stake in GM India, which became an equal joint venture (JV) between the Chinese automaker and the U.S. automotive giant.
