The Refinancing of

Shanghai General
Motors
By:
Chanakya
Saurav
Swetha
Neetica

About General Motors

In 2000,15% worldwide market share
Four joint ventures and two wholly owned
subsidiaries all over the world.
Only 4% stake in Asia.
A strategic initiative to form Shanghai GM
partnership as it viewed China as a vital market to
strength its position in Asia.(idea conceived in
1994).

About Shanghai Automotive

Industry Corporation
100% wholly owned by Shanghai Municipal
Government.
In 1984, joined with Volkswagen to introduce
Santana model as SAIC was the leading autoproducer and VW the leading brand.
Had involved in joint ventures with many big
names in the automobile industry such as Bosch,
Delphi, Visteon etc.

About Shanghai General

Motors
An equal partnership between GM and SAIC gave
birth to SGM .
The initial capitalization was $700 million of equity
and $821 million of debt that would be raised.
Was incorporated in 1997 but began operations
from 1999.
Initially imported 60% of its components from
outside of the country but slowly the ratio fell to
40%.
Both the partners contributed expertise
assistance in SGM.