General Motors Co denied speculations that its relationship with Shanghai Automotive Industry Corp or SAIC was falling apart. Both companies were also talking about a possible tie-up in Indonesia. GM China Chairman Tim Lee told Reuters, "The relationship between SAIC and GM has never been better."

Speculations about the frayed relationship between the companies came as SAIC undertook independent moves to grow in markets outside of China. SAIC recently announced plans to begin making cars in Thailand with CP Group Co. Lee said the moves of SAIC was merely the result of the state-owned firm's maturity as a car manufacturer.

Lee and GM China President Bob Socia said that the sales of GM's joint ventures with SAC in the mainland would increase to 3 million vehicles. GM China and SAIC would be opening four new facilities to meet the growing demand.

Lee added, "The conclusion that (GM Chief Executive) Dan Akerson and the board came to was China is so important to us and the relationships within China are so important."