Financial crisis creates new opportunity for GM

On Feb, o6 2009 General Motors Corp., which is currently surviving on U.S. government loans at home, is in expansion mode in China, holding talks with state-owned auto maker FAW Group Corp., on a possible new joint venture to make light commercial vehicles. At the end of February, the president of GM China Investment Co. Ltd., Kevin E Wale officially visited the Governor of Heilongjiang province Li Zhanshu.

Mar,19 2009, It is reported that the FAW Harbin Light Duty Truck Factory will serve as the major part of the joint venture in the light commercial vehicle cooperation project between GM and FAW. This has always been a global ongoing process in the auto industry. However, Before this project, GM only has joint partner with Shanghai auto parts manufacture Co.

The current worldwide financial downturn generates conditions that provide opportunities for stronger entities to consolidate the weaker ones. China, as an emerging market, seems not affect by the global financial crisis, the auto industry still keep growing. The truck segment's sales of GM is the only one can generate profits for GM. With steps in the Chinese light truck segment, GM would utilize and combine its technology with intensive Chinese labor to find a new market for truck sales.