General Motors is to pay US$51m to buy an additional 10% stake in the Chinese joint venture it owns with SAIC and Liuzhou Wuling Motors.

GM currently owns 34% of SAIC-GM-Wuling Automotive and will acquire the stake from Wuling which will retain a 6% participation.

GM said it will provide technical services to the Chinese company through to 2013.

SAIC owns the other 50% of SGMW which produces mini-commercial vehicles and passenger cars in China. The deal is subject to regulatory approval.

The US manufacturer is also due to sell equity to SAIC as part of its initial public offering according to a report by the Reuters news agency yesterday.