General Motors 2011 Annual Report Download - page 109

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
We received dividends from nonconsolidated affiliates of $1.2 billion, $685 million and $134 million in the years ended
December 31, 2011 and 2010 and the period July 10, 2009 through December 31, 2009, and Old GM received dividends of $220
million in the period January 1, 2009 through July 9, 2009. At December 31, 2011 we had undistributed earnings including dividends
declared but not received, of $1.6 billion related to our nonconsolidated affiliates.
Investment in China JVs
The following table summarizes our direct ownership interests in our Chinese joint ventures, collectively referred to as China JVs:
Successor
December 31, 2011 December 31, 2010
ShanghaiGeneralMotorsCo.,Ltd.(SGM) ........................................... 49% 49%
Shanghai GM Norsom Motor Co., Ltd. (SGM Norsom) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25% 25%
Shanghai GM Dong Yue Motors Co., Ltd. (SGM DY) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25% 25%
Shanghai GM Dong Yue Powertrain (SGM DYPT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25% 25%
SAIC-GM-Wuling Automobile Co., Ltd. (SGMW) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44% 44%
FAW-GM Light Duty Commercial Vehicle Co., Ltd. (FAW-GM) . . . . . . . . . . . . . . . . . . . . . . . . . 50% 50%
Pan Asia Technical Automotive Center Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50% 50%
Shanghai OnStar Telematics Co., Ltd. (Shanghai OnStar) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40% 40%
Shanghai Chengxin Used Car Operation and Management Co., Ltd. (Shanghai Chengxin Used
Car) ........................................................................ 33% 33%
SAIC General Motors Sales Co., Ltd. (SGMS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49%
Sales and income of our China JVs are not consolidated into our financial statements; rather, our proportionate share of the earnings
of each joint venture is reflected as Equity income, net of tax and gain on disposal of investments.
SGM is a joint venture established in 1997 by SAIC (51%) and us (49%). SGM has interests in three other joint ventures in China:
SGM Norsom, SGM DY and SGM DYPT. These three joint ventures are jointly held by SGM (50%), SAIC (25%) and us (25%).
These four joint ventures are engaged in the production, import, and sale of a comprehensive range of products under the brands of
Buick, Chevrolet and Cadillac. SGM also has interests in Shanghai OnStar (20%) and Shanghai Chengxin Used Car (33%).
SGMS is a joint venture established in November 2011 by SAIC (51%) and us (49%) to engage in the sales of the imported brands
of Buick, Chevrolet and Cadillac and the sales of automobiles manufactured by SGM.
In February 2010 we sold a 1% ownership interest in SGM to SAIC-HK, reducing our ownership interest to 49%. The sale of the
1% ownership interest to SAIC was predicated on our ability to work with SAIC to obtain a $400 million line of credit from a
commercial bank to us. We also received a call option to repurchase the 1% which is contingently exercisable based on events which
we do not unilaterally control. As part of the loan arrangement SAIC provided a commitment whereby, in the event of default, SAIC
will purchase the ownership interest in SGM that we pledged as collateral for the loan. We recorded an insignificant gain on this
transaction.
In November 2010 we purchased an additional 10% interest in SGMW from the Liuzhou Wuling Motors Co., Ltd. and Liuzhou
Mini Vehicles Factory, collectively the Wuling Group, for cash of $52 million plus an agreement to provide technical services to the
Wuling Group for a period of three years. As a result of this transaction we own 44%, SAIC owns 50.1% and certain Liuzhou
investors own 5.9% of the outstanding stock of SGMW.
Sale of New Delphi
In March 2011 we sold our Class A Membership Interests in New Delphi to New Delphi for $3.8 billion. The Class A Membership
Interests sold represented 100% of our direct and indirect interests in New Delphi and 100% of New Delphi’s Class A Membership
General Motors Company 2011 Annual Report 107