GM originally setup its JV with SAIC-GM in 1995 with its 50% contribution to registered capital of ~$800M
The equity component might even be less depending on how much the buildout of the plant was funded by local debt.
The equity component might even be less depending on how much the buildout of the plant was funded by local debt.
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The GM-SAIC joint venture was profitable from the start: it is not hard for a car company to be profitable when it does not have to reinvest significantly back into R&D.
This meant GM did not have to put that much more incremental capital at risk than the initial registered capital amounts.
Even last year (2023), GM earned $446 million on ~1M unit sales.
GM had little operational responsibility as again, its main goal for the JV was to monetizing existing R&D selling to Chinese households.
Buick was a best-selling brand, as it was associated with upper class and literal royalty in Shanghai in the 1930s.
https://www.mofba.org/2020/06/30/buick-the-last-emperor-s-automobile-of-choice/
https://www.reuters.com/business/autos-transportation/gm-take-more-than-5-billion-charges-china-operations-2024-12-04/