Apr. 8, 2009 (China Knowledge) - Shanghai Automotive Industry Corp (SAIC), China's third-largest automaker, may take over General Motor's Buick brand, which is valued at US$1 billion, the Shanghai Securities News reported on Tuesday.
China is the biggest market for GM's Buick, with sales volume exceeding the U.S. in 2008. In 2007, GM sold 332,115 Buick cars in China as compared to 185,791 units in the U.S.
People close to the deal said that GM has to spin off the Buick brand as it recorded lowest sales in the American market. In addition, the Obama Administration is also likely to ask GM to reduce its brands as the government wants the automaker to focus on the brands that can make profits worldwide and revitalize its business as soon as possible.
SAIC is the Chinese partner with GM. The two sides have set up two joint ventures, namely Shanghai GM and SAIC-GM-Wuling Automobile.