September 20, 2010 (Chinavestor) Chinese automaker SAIC (SHA:600104) is reportedly interested in making an investment in GM when the U.S. auto giant commences an initial public offering that is planned for mid-November. SAIC (SHA:600104) and GM already work on several joint ventures together, according to the Detroit Free-Press, which broke the story of the Chinese company's interest in GM.
According to unidentified sources, SAIC (SHA:600104) would like to make a single-digit investment in GM. The U.S. Treasury Department owns 61% of GM after loaning the company $50 billion during the financial crisis to save it from collapse and the IPO is a viewed as a way for the U.S. government to recoup some of its investment in GM, the Free-Press reported.
GM and SAIC (SHA:600104) have a had a relationship for over a decade and those ties are crucial for GM as it expands in China, the world's largest auto market, the paper reported.
The investment is no guarantee as the Treasury Department may have reservations about allowing a Chinese company to invest in GM. Treasury has already said the GM IPO will focus on North American investors.