Shanghai Automotive Industry Corporation (SAIC) has entered into a joint venture agreement with General Motors India. SAIC will now have a joint MD to co-manage Indian operations for General Motors India. The joint venture will bring in some changes in the board and SAIC will have a bigger say.
In a media statement issued, GM India, managing director, Karl Slym said, "Yes, we will be recasting the board of GM India soon. The changes will likely happen in the next board meeting." The current board members consists of GM members but soon the board will have equal participation from both GM and SAIC.
Chinese automakers who have largely remained silent all these years have recently gone aggressive, with earlier Chinese company Geely taking over Volvo and now the country seems to be keen on entering India as well.
SAIC will be an aggressive member of GM India and will handle running of its operations. It remains to be seen how Indian customers react to the entry of Chinese auto makers in the country with such a strong alliance.
