There are still more than 100 independent car manufacturers in China, with most experiencing extensive consolidations within the industry. An inside source explained to Reuters that Zhongxing is one of the biggest players in the industry and would be a valuable takeover or joint-venture target. The source also confirmed that GM was in exploratory talks with Zhongxing as well as FAW and that all three parties were open to any possibilities.
While Zhongxing is not on the same level as major Chinese manufacturers such as Roewe, Chery, Shanghai Auto (GM's current Chinese partner), or even FAW, the company is known for its dominance of manufacturing trucks and SUV's, with sales of around 45,000 units expected this year.
GM is experiencing declining growth in China, with sales levels down 6% from levels a year ago. Strong growth markets such as China are crucial for carmakers experiencing rapid sales declines in more established regions such as North America and Europe.