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Shanghai GM not substantially affected
+ -
16:01, April 23, 2009

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"Shanghai GM is not substantially affected by the news, recently released by the US government, regarding the bankruptcy of General Motors Corporation (GM). On the contrary, there are some chances for us to turn crisis into opportunity." This is according to Ding Lei, General Manager of Shanghai GM, who responded positively during the 2009 Shanghai auto show about concerns in the auto industry resulting from the "GM crisis"

Ding noted that the statement by the US government, led by President Obama, is a positive signal, indicating that the government has taken an official position to intervene in the GM crisis. The government will not only work as the guarantor for relations between GM and its sales agents and customers, it will force GM to shake off the historical burdens of labor unions and labor management relations through tough measures including settlement in and out of the court, as well as bankruptcy protection. "First and foremost, bankruptcy protection involves avoiding bankruptcy."

Ding pointed out that GM will still be in excellent shape if it can rid itself of its historical burdens, because it is the forerunner in hydrogen energy, hybrid power and electric vehicles, and its global platform is the most advanced. GM will become an even stronger company through restructuring.

Ding said that on the other hand, Shanghai GM is a fully-independent joint venture. Over the past 12 years, its lean production management system, its business system of lean operations and even its worldwide purchasing are independent. It is of great importance that its marketing and service system is entirely independent.

In addition, Shanghai GM has formed a complete and advanced technology development system, already capable of developing entire vehicles, which is now entering the final phase. At the end of this year, the popular new-generation sedan, developed under the leadership of Shanghai GM's Pan Asia Technical Automotive Center Company, will be released for sale. It is also developing low-emission engines that adopt the latest variable valve technology.

In the future, GM plans to achieve auto sales of two million vehicles, of which, one million will come from Shanghai GM. At present, all of Shanghai GM's products and projects have not only not been cancelled or postponed; some of them have been launched ahead of schedule. Its plans to invest 400 to 500 million yuan in the SAIC-GM corporate pavilion at World Expo 2010 in Shanghai and 1.8 billion yuan in vehicle testing has also not changed, fully indicating the confidence of shareholders from both sides.

Additionally, Shanghai GM's corporate regulations stipulate that shareholders from both sides cannot freely transfer or withdraw from the company. Any transfer is only possible with the other party's consent, and the other party has the first right to purchase the other party's shares. Therefore, even though GM has entered into bankruptcy protection procedures, its shares in Shanghai GM cannot be freely transferred to a third party. The joint venture's brand licensing cannot be freely transferred either.

By People's Daily Online

http://paper.people.com.cn/rmrb/html/2009-04/22/content_237728.htm



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