Gasgoo.com (Shanghai October 27) - Shanghai Automotive (SAIC) and General Motors announced yesterday evening that they were jointly establishing a new sales company, the Beijing Times reported. The company will be responsible for Shanghai GM's sales work in the country.

SAIC will possess 51 percent of the company, while the remaining 49 percent will be owned by GM. The company's performance returns will be integrated into SAIC's finance reports. According to SAIC officials, the new company will imitate the structure of fellow joint venture Shanghai VW's sales project. GM hopes that, by helping establish the new company, SAIC will yield one percent of stock control in the Shanghai GM joint venture.

In 2009, GM allowed SAIC to purchase an additional one percent stock in their joint venture. The two parties agreed that GM has precedence in buying that one percent back, but only on the condition that it sends a request to SAIC. On the floor of a meeting discussing GM's second quarter sales, Chairman and CEO Dan Akerson (pictured) confirmed that the manufacturer has requested SAIC to buy that one percent back for $85 million. Mr. Akerson brought the members of GM's board of directors to China last month, also with the purpose of retrieving the one percent share.