General Motors 2013 Annual Report Download - page 78

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Investment in China JVs
The following table summarizes our direct ownership interests in China JVs:
December 31, 2013 December 31, 2012
Shanghai General Motors Co., Ltd. (SGM) ........................................... 50% 50%
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. ............................................. 44% 44%
FAW-GM Light Duty Commercial Vehicle Co., Ltd. ................................... 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% 49%
SGM is a joint venture established by Shanghai Automotive Industry Corporation (SAIC) (50%) and us (50%). 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 Buick, Chevrolet and Cadillac brands. SGM also has interests in Shanghai OnStar (20%) and Shanghai
Chengxin Used Car (33%). SGM also has a 20% equity interest in GMAC-SAIC, a joint venture established by General Motors
Acceptance Corporation (now Ally Financial) (40%) and SAIC Finance Co., Ltd. (40%).
SGMS is a joint venture established in November 2011 by SAIC (51%) and us (49%) to engage in the sales of the imported Buick,
Chevrolet and Cadillac brands and the sales of automobiles manufactured by SGM.
In September 2012 we repurchased a 1% interest in SGM for a total consideration of $119 million, increasing our ownership
interest in SGM to 50%. The transaction was accounted for by applying the equity method of accounting. The consideration exceeded
our proportionate share of the 1% interest in SGM net assets by $82 million, which consists of plant, property and equipment,
intangible assets and goodwill of $8 million, $36 million and $38 million.
Sale of New Delphi
In March 2011 we sold our Class A Membership Interests in Delphi Automotive LLP (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 Interests issued and outstanding. The sale terminated any direct and indirect obligation to loan New
Delphi up to $500 million under a term loan facility established in October 2009 when New Delphi was created and the Class A
Membership Interests were issued. New Delphi had not borrowed under this loan facility. In March 2011 we recorded a gain of $1.6
billion related to the sale in Equity income and gain on investments. Our existing supply contracts with New Delphi were not affected
by this transaction.
Investment in GM India
In March 2011 the fair value of our investment in GM India was determined to be less than its carrying amount. The loss in value
was determined to be other-than-temporary; therefore, we recorded an impairment charge of $39 million in the three months ended
March 31, 2011. In addition we recorded other charges totaling $67 million related to our investment in GM India. Refer to Note 3 for
detail regarding the acquisition of GM India.
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2013 ANNUAL REPORT