According to Chinese media reports and reports from Bloomberg, GM are apparently looking to buy into struggling Chinese auto manufacturers. By 2015 GM is expected to lift its China sales by 75% to roughly 5 million units per year, and by buying a Chinese brand they will be able to increase capacity relatively easy.
Despite joining the World Trade Organization, China still has strict regulations for foreign automakers entering into the Chinese market to produce vehicles, all foreign manufacturers must enter into a joint venture partnership with local partners. China currently has 71 passenger vehicle manufacturers, but ten of those did not achieve sales in 2012 which seems like a strong oppertunity for a foreign manufacturer to assist the Chinese government with its plans for merging and shrinking the Chinese auto industry into a more streamlined market.
In the early days of opening and reform, many car manufacturers sprouted up like grass in the Guandong area, these companies focused on assembling CKD kits of vehicles from major manufacturers and applying their own brands, see this San Xing Voyager for an example.Â Several of these minor companies with minor sales figures are circling the drain as they struggle to sell vehicles, and would present a good opportunity for a major company to further their investment in the Chinese market.