GM’s $29 Million Fine To Be Paid By GM-SAIC Joint Venture
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Last week, the Chinese government slapped General Motors with a $29 million USD (201 million yuan) fine for violating anti-monopoly laws. General Motors, however, won’t be alone in footing the bill, as GM Authority has confirmed that the fine will be paid by SAIC General Motors Sales Corp. Often referred to as Shanghai GM, SAIC General Motors is GM’s primary joint venture in China with SAIC (Shanghai Automotive Industry Corp.) responsible for Chevrolet, Buick and Cadillac operations in China.
The part that is interesting, if not somewhat ironic, is that SAIC is a state-owned entity, and that General Motors and SAIC have equal equity in the SAIC General Motors joint venture as of April 2012. So, since state-owned SAIC is responsible for half of the SAIC General Motors joint venture, it’s as if China fined itself for half of the penalty amount.
In discussing the fine, GM China told us that it “fully respects local laws and regulations wherever we operate,” and that it plans to provide “full support to our joint venture in China to ensure that all responsive and appropriate actions are taken with respect to this matter”.
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Funny how they’ll fine GM but yet they’ll do the exact same thing, completely badge engineer a Chevy truck call it a “Chevrolay Silveraado” and ignore/block all attempts to seek legal action then continue to manipulate their own currency.
Good job, Alex. Thanks for looking into it!
It’s China, don’t expect logic.
They are just huffing and puffing because they know the world is changing and they can’t manipulate America anymore.
The US government had a stake in GM when the DOJ fined it. Ironic, isnt it? Not if you understand that the government and the DOJ, or in China’s case the government and their DOJ equivalent, arent one and the same thing.
Well, America is changing for the better come the 20th. We will actually have a Commander-in-Chief that has the balls to stand up to Communist China. Judging by the whining coming out of China these days, it’s working already. That and the continuous stream of bad economic news coming out of China and change is coming.