"This investment is made on the basis of the good, strategic partnership between the two parties and their confidence in GM's development prospects," Shanghai-based SAIC said in a statement.
"GM is an important strategic partner of SAIC Group; the good partnership between the two sides for a win-win situation of mutual benefit and mutual trust has been in existence for more than a decade, and the successful cooperation between them in running their joint ventures in China has won market recognition."
GM and Shanghai Automotive Industry Corp. formed their first venture in 1997. It is one of the leading partnerships in China, where foreign automakers are only allowed to make vehicles with a Chinese partner.
SAIC ranks third among the "Big Five" Chinese automakers (the other four are First Automobile Works, Dongfeng Motor Corporation, Chang'an Motors, and Chery Automobile). Additionally, it is the sole distributor of GM products in China through its subsidiaries SAIC Motor, Nanjing Auto, Shanghai Huizhong, Nanjing Iveco (Naveco), Shanghai GM, Shanghai Volkswagen, SAIC-GM-Wuling and Shanghai Sunwin Bus.
The parent of SAIC Motor Corp. is investing US $930 million in the development and manufacture of clean energy vehicles until 2011. SAIC will launch its hybrid Roewe sedans in 2010 and electric cars by 2012, while also outsourcing green cars batteries to BYD Co.
SAIC Motor and its joint ventures in China sold 2.72 million vehicles in 2009 and posted a profit of 6.592 billion Yuan (US $993 million).
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