GM Extends Their Shares In The FAW Group

General Motors has increase its Chinese alliance with FAW Group Corp as they extended their share to a 50-50 venture. The joint venture will focus on GM’s light duty vehicles.

“Our new joint venture combines the expertise of two industry leaders in a partnership that benefits both,” said Nick Reilly, GM Executive Vice President and President of GM International Operations.

“It will address demand in China and other markets for high-quality, affordable products in one of the industry’s most robust segments, while complementing the portfolio of products that GM and FAW currently offer. It sends an important signal of GM’s ongoing commitment to China through our strategy of working in China, with China and for China.”

The joint venture might allow for future models to be sold in China, where they could face a rebadge for that market.

“Light-duty commercial vehicles will play a strategic role in China’s urbanization and rural development,” said Xu Jianyi. “FAW and GM have a common understanding of the importance of the global commercial vehicle market, including the China market. Cooperation is not only the key for the two partners to achieve our strategic goals. It is also a proactive step for helping the Chinese government realize its plan of restructuring and further developing the automotive industry, broadening the market share of local self-owned brands and enhancing FAW’s performance.”