GM says ties with SAIC healthy despite Peugeot Citroen investment
General Motors Co said its ties with the Shanghai Automotive Industry Corp or SAIC were healthy despite GM's move to invest in PSA Peugeot Citroen. Reuters reported that analysts had seen GM's plan to invest 7% in the French carmaker signaled that there were possible problem in the relationship between GM and SAIC.
GM said its investment in Peugeot was focused only for Europe. GM is in the process of fixing issues that have plagued its Opel unit. However, Reuters reported that the two companies had also discussed opportunities to work together in Latin America and Russia. Tim Lee, the Chairman of GM China, did not delve on the details of the possible partnership but told Reuters, "It's basically a western and central European plan."
Lee also said that the company's alliance with China-based SAIC would be integral for GM on a worldwide scale, as GM tries to capitalize on the growing demand in the world's largest market.