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GM bankruptcy to have minimal impact on China business

(Xinhua)
Updated: 2009-06-01 23:40

DETROIT -- General Motors Corp. going bankrupt would not interrupt its operations and sales in China, the company's joint venture in China said on Monday.

GM China said that no matter what the decision (on bankruptcy) would be, "the impact will be minimal to our China business including our operations and sales."

Full coverage:  Global Auto Industry Woes Related readings:  GM's bankruptcy no substantial impact on Shanghai JV  General Motors files for bankruptcy protection  GM to reorganize in government-led bankruptcy  Geithner pledged deficits cut, but GM bill grows   Official: US gets 60% of GM after bankruptcy

"We will maintain our normal business operations, including our suppliers system, dealers, warranty and customer support operations," the statement said, "GM in China will continue to commit long-term development together with our partners and JVs."

The GM entered Chapter 11 after filing to the Federal Bankruptcy Court in New York Monday morning, marking the largest industrial bankruptcy in the US history.

The GM has a vehicle manufacturing venture with Shanghai Automotive Industry Corp. of China. GM vehicle sales in China, its largest overseas market, surged 50 percent to a monthly record of 151,084 units in April, in contrast with a sharp decline in the United States.

Last month, the GM confirmed the production of low-emission Ecotec engines at its joint venture in China, which will be mounted on the newly launched Chevrolet Cruze compact sedan.

And it plans to sell about 17,300 Chinese-made compact cars in the United States in 2011 and to triple that to about 51,500 in 2014, according to a planning document that the GM circulated among US lawmakers.