GM to cede venture control to China partner

US auto giant General Motors has reached a deal to hand control of its joint venture with China's SAIC Motor Corp to the Shanghai-based car maker, the New York Times said Thursday

SAIC said Thursday its shares had been suspended from trading pending an announcement on a "major assets restructuring."

According to the Times, the troubled GM will sell SAIC 1.0 percent of its stake in their joint venture which would then give China's largest car maker a 51 percent share of the company.

In return, GM will keep equal voting rights with SAIC and reserve the right to buy back the 1.0 percent stake at a later stage, the report said.

There was no immediate comment from General Motors on the report, and it was not known how much the sale would raise for the US giant which is undergoing a major restructuring.

But one person close to GM told the Times: "It's a big deal, it's a good deal."

SAIC shares, which closed down 0.04 percent at 25.53 yuan on Wednesday, will resume trading after the plan is announced, SAIC said

People's Daily Online