GM China says still expanding despite parent's woes

201 words

2 June 2009

12:53

Agence France Presse

English

Copyright Agence France-Presse, 2009 All reproduction and presentation rights reserved.

The China unit of auto maker General Motors continues to expand despite the woes of its parent, which this week filed for bankruptcy, with new joint venture plans still on, an executive said Tuesday.

GM's China business is self-sustaining and does not require financing from the parent company in the United States, GM China President Kevin Wale told reporters.

He said the firm is maintaining its goal of doubling sales to more than two million units over the next five years and will "probably need to build another plant in the next five years".

The once mighty General Motors filed for bankruptcy in New York Monday in a bid to wipe out massive debts piled up over the past decade.

But Wale said the China arm is still in talks with local firm First Automotive Works (FAW) to set up a commercial vehicle joint venture.

"On FAW, we have said previously we are working closely with them on the commercial vehicle project," he said.

"We are still working through the agreements with them... We are moving forward in a positive manner."