Shanghai Automotive Industry Corp’s (SAIC) on Monday said it approved the sale of 1 percent in the Shanghai GM venture back to venture partner General Motors.
Shanghai Automotive bought the stake from General Motors in 2009 for $85 million.
The agreement still requires Chinese government approval.
GM currently holds a 46.357% stake in Shanghai GM, the joint venture.
As GM was sliding into bankruptcy in 2009, it sold the 1% stake for $84.5 million, giving SAIC majority control of the joint venture.
Both companies would hold equal stakes in the operations arm, while Shanghai Automotive Industry retains a 51 percent majority in the sales arm.
GM’s overall sales in China were strong–it sold 227,217 vehicles in April, up 11.7% from a year earlier, helped by a 22% rise in sales to 117,829 vehicles by GM’s microvan joint venture with Shanghai Automotive Industry Corp. and Liuzhou Wuling Motors Co.
For the first four months of the year, GM and its joint ventures sold 972,369 vehicles, up 9.4% from the same period a year earlier, it said in a statement.
GM sold more than 2.5 million vehicles in China last year.