GM may raise stake in Wuling minivan venture

General Motors is in discussions to raise its stake in minivan producer SAIC-GM-Wuling Automotive to 44%, the South China Morning Post reported. The venture, which manufactures small cargo vans, has seen high sales growth thanks to strong demand from developing inland markets and Beijing's decision earlier this year to cut the purchase tax on small-engined vehicles from 10% to 5%. The tax will be raised to 7.5% in 2010. Wuling had a 9.78% share of China's passenger car market in the first 11 months of the year. GM would buy a 10% share in the venture from Liuzhou Wuling, which would see its own stake reduced to 5.9%. Earlier in December, GM sold 1% of its stake in Shanghai GM to its partner, SAIC.