UPDATE 1-GM in talks with China's SAIC to raise cash-sources
(Adds background, details on talks, bylines)
By Soyoung Kim and Kevin Krolicki
DETROIT Feb 12 (Reuters) - General Motors Corp (GM.N: Quotazione) has been in talks with China's SAIC Motor Corp (600104.SS: Quotazione) about the possible sale of a share of GM's stake in their joint venture or other assets as the U.S. automaker races to raise cash, two sources familiar with the discussions said.
GM approached SAIC in recent weeks with an offer to sell some of its stake in their 50-50 joint-venture that builds and markets Buick, Cadillac and Chevrolet models in China, according to the sources.
The sources declined to be identified because they were not authorized to discuss the preliminary contacts between the two companies.
Such a deal would make GM a minority partner at its decade-old flagship venture in China, Shanghai General Motors Ltd., considered to be one of the remaining crown jewels in its global operations.
The discussions between GM and SAIC are playing out against the backdrop of a push by GM to secure deep concessions from its bondholders and major union to show it can be made viable under the terms of a $13.4-billion U.S. government bailout.
GM faces a deadline of next Tuesday to submit a new restructuring plan to the U.S. government detailing the progress it has made in cutting costs and shoring up its balance sheet.
GM and SAIC had no comment. Shanghai Automotive Industry Group is the parent company of SAIC Motor, a listed unit that holds all of the vehicle assembly assets of the group. Continua...