• Nov 8, 2010
While General Motors may be jetting around the globe in an attempt to woo investors, one company has made it clear it wants to snap up plenty of GM stock once The General goes public. Chinese manufacturer SAIC Motor President Chen Hong is currently in the States to negotiate with the American automaker about procuring GM shares. His company currently packs around $5.7 billion in cash or cash equivalents, so SAIC Motor shouldn't have any problem laying its hands on more than few GM shares.

SAIC has a history of working closely with GM in the past. The two companies have joined forces on everything from powertrain development to full name plates. If anyone knows the ins and outs of working with the biggest of the big three, it's these guys.

GM has announced that the company will go public once again on November 18 and plans to raise $10.6 billion in the process. Look for shares to go for anywhere between $26 and $29. GM will also offer $3 billion in preferred stock at the same time. Exactly how much of that goes to SAIC Motor remains to be seen.

[Source: Trading Markets via TTAC | Image: Phillippe Lopez/AFP/Getty Images ]


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  • 44 Comments
      • 4 Years Ago
      I couldn't feel more sold out!
      • 4 Years Ago
      LOL. I guess it's a good move for SAIC
        • 4 Years Ago
        I wonder what customers in the "Heartland" are going to think of this one. Rather than bring their own nameplates here why not buy up an existing one? This will just like the sale of MG. MG when from Morris Garage to "Modern Gentlemen." GM will go from General Motors to Government Motors to Global Motors.
      • 4 Years Ago
      Welcome to the United States of China.
        • 4 Years Ago
        Obama's fault somehow is how I'll end up hearing it at some point.
        • 4 Years Ago
        They're already pretty tight partners anyway-I mean China is insanely important as a market for GM and GM's Chinese operations are all with SAIC.
        I think it's largely a matter of SAIC participating to help GM out anyways, it's not like they're taking a controlling stake but if they publicly state that they'll be investing and put some money on it, it'll help make the IPO more attractive. This happens a lot with Chinese businesses-whenever anybody does an IPO it's almost a given that other big businesses and tycoons will participate just to give the IPO legitimacy.
        • 4 Years Ago
        cue the xenophobia.
        • 4 Years Ago
        theedude,

        Xenophobia? Not on my part. More like a combination of Governmentphobia & Corporationphobia. Two fears of dangerous power.
        • 4 Years Ago
        It's not the first time that a foreign interest bought into an American company. I'm sure that foreign investment companies own Ford stocks, and American investment companies own some Volkswagen stocks.
      • 4 Years Ago
      The Chinese are going to own the world if their pace of buying companies and shares of companies keeps moving.
      • 4 Years Ago
      It doesn't appear that China is really playing by the WTO rules, whether its the auto industry or otherwise, so I am not sure why Western governments don't try and prevent this sort of thing. If FIAT issue IPOs, it will be the same thing. All these companies will be bought up, and no one seems to give a hoot.
        • 4 Years Ago
        lol, nobody plays by any rules set by any of these organizations. The only thing is that the news coverage depends on which country you happen to be in, since everyone will just complain about the other countries breaking the rules.
        I mean the U.S. complains all the time about China rigging it's currency but of course we get trashed by other countries for doing the same thing:
        http://www.nytimes.com/2010/11/07/business/07currency.html
        If you really didn't do business with countries that break the rules you'd have to stop trading with everyone, even Canada (whom we've accused of dumping plenty of times). It's just the way it goes-everyone tries to get their own country a bit of an edge, while accusing everyone else of unfairly getting an edge, lol.
        • 4 Years Ago
        Well, preventing others from investing in our economy isn' t necessarily playing by WTO rules neither.
      • 4 Years Ago
      Are we still as a country so ignorant that we laugh and mock Chinese investments in American companies?

      Welcome to 2010 everyone, its a world economy.
        • 4 Years Ago
        Oh the irony of your post... ignorance must be bliss.
        • 4 Years Ago
        Nah, you just block them for "national security" reasons...
      • 4 Years Ago
      The American public and shareholders who got screwed in the bankruptcy should have first shot at the IPO. It's disgusting that Wall Street and Foreign investors will get the spoils from the backs of American taxpayers.
        • 4 Years Ago
        Sorry, but China is the only one willing to buy the GM stocks. Sure, it would be "nice" if the USA citizens would buy GM stocks, but I don't think we are that stupid. We should be thanking China for buying GM.
        • 4 Years Ago
        You're being ridiculous, they're probably only in on the IPO to get other investors to go in on the IPO. It probably won't be hard at all for regular people to buy at or near the IPO price anyway, but right now they're probably looking for big investors to make it a sure thing so SAIC is really doing them a favor by staking them. Big IPOs like this need large investors to stake billions to show stability-it means that someone with deep pockets has "skin in the game" and would do what they could to help protect their investment. Basically if you have 1 million investors that each put in $1000 you would have a billion dollar investment, but none of those investors could help you out if you got into financial trouble. But if you have one investor that puts in a billion dollars they likely have very deep pockets, so if you ran into some problems you could ask them for help-and they'd be likely to help since they want to protect their investment. That's the reason why IPOs go to big companies and banks and wealthy individuals first-it provides stability to the IPO, and makes it more attractive to smaller investors (including mutual funds and smaller banks and regular investors).
        It's really ridiculous that so many commentators are turning this into some kind of conspiracy theory about China trying to take over the U.S. SAIC is just helping their longtime partner out by staking them in an IPO to show that they have faith in the new GM. Since China is GM's largest market these days, having your manufacturing partner say that they believe in you is basically having someone "in the know" saying that you have a bright future-which helps out your IPO a lot.
      • 4 Years Ago
      A-hole racist troll, you are....
      • 4 Years Ago
      I wonder how fast autoblog would take down my comments if I were to throw around racial slurs and the like against blacks, hispanic's and jews....
      • 4 Years Ago
      I hope Americans will have at least 51% of GM.
      • 4 Years Ago
      Were we not told that there was no interest in keeping GM open were it not for the government? Would these companies not have invested in buying the parts of GM under chapter 11 or even under chapter 7 under even more favorable conditions? I still believe that would have been the case, particularly the parts related to Buick in China and the trucks in the US. I simply cannot see companies that could leverage and companies sitting on cash passing on the opportunity of those markets. Just look at Fiat. They did not pass the opportunity to grab Chrysler. I still believe under chapter 11, or even chapter 7, Carlos Ghosn would have made an offer to get parts of GM, as he had sought to do a few years back.
        • 4 Years Ago
        Forgot to add, GM did file for Chapter 11 as well as taking Government money. Maybe I misunderstood your post, but it seems that you missed that?
        • 4 Years Ago
        What would they have "invested in" in a chapter 7 bankruptcy? The assets (factories, lands, other capital) would have been liquidated. I'm not sure that China buying facotories in the US would be worth much. In Chapter 7 GM would have been gone. Their is no investment opportunity there unless SAIC was to build a car in the US using the old GM plants, or buy a painting robot for its factory in China.
      • 4 Years Ago
      Folks should be more globally aware - SAIC has been making parts for Ford and GM for years, and they make tractors for Case and New Holland, among who knows what else. We are way past the point of isolating ourselves. We need to take all the money (help) we can.
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