Where your bailout $ will go: Troubled GM says it is profitable in China, will continue to invest [View All]

[Hannah Bell]

http://news.yahoo.com/s/afp/20081112/ts_alt_afp/uschinaautofinancecompanygm_081112143110

"We are continuing our investment in China and actually we are very profitable in China," said Henry Wong, a Shanghai-based spokesman for the biggest US auto maker. He told AFP that various investment projects GM had committed itself to in the past were "all on target and on track." These included expansion projects for existing plants in the cities of Qingdao and Yantai, both in east China's Shandong province, he said. "We are not withdrawing or holding back any investment in China," he said.

He declined to comment on reports in the local media that it planned to increase its 34-percent stake in SAIC-GM-Wuling, a joint venture that produces commercial vehicles. "I will not speculate on where money will come from for future investment of speculative nature. Right now it's too early to talk about that," he said.

On Monday, GM chief executive Rick Wagoner said the US auto maker was in such dire financial straits that it needed to line up a federal aid package before president-elect Barack Obama took office in January. "This is an issue that needs to be addressed urgently," Wagoner told Automotive News, adding that now is the time to "overshoot, not undershoot" the level of assistance.

GM has said it needs cash reserves of between 11 and 14 billion dollars to cover the cost of its operations.