SAIC Included in GM India Management Board

Shanghai Automotive Industry Corporation (SAIC), the Chinese joint business partner of General Motors is expanding its collaboration with the U.S. company, as it has been offered a management role in GM’s business in India.

General Motors India has performed a management board change, with the Chinese company receiving a number of senior positions. GM’s Indian operations are being run by a board that includes both GM and SAIC members.

Karl Slym, General Motors India’s president and operating director has kept his role in the company, continuing to manage operations in the country. The SAIC management team members have already joined the GM India board and are currently working together with the GM personnel.

GM established an equally owned joint venture with SAIC to manage the Indian automotive production operations in December last year, selling half of its business in the country to the Chinese company. The deal was made through a $500 million contract. SAIC officials said that they plan to expand this collaboration, as they want to play an important role in the Indian business.

SAIC financial forecasts show that the company expects its Indian JV with GM to enter the profit zone in three years. The business’s core activity is the manufacturing and selling of small vehicles. The Indian automotive market has an important potential, as it is expected to see a 100 percent surge to 5 million units by 2015. This would make it SAIC’s second largest market, after the automotive producer’s domestic one.