China's Zhongxing in talks with GM, FAW: source (Reuters)

Thursday July 24, 1:17 am ET SHANGHAI (Reuters) - China's Hebei Zhongxing Automobile Co is in talks with General Motors (NYSE:GM - News ) and major Chinese automaker FAW Group to explore opportunities for cooperation, including equity ties, a source close to the situation said on Thursday. "Consolidation is inevitable in the Chinese auto market, which now has more than 100 players, and a company of Zhongxing's size makes a good takeover target or joint venture partner," the source told Reuters. "Zhongxing is holding talks with several potential partners including FAW and GM to seek cooperative opportunities, including possible equity ties, but nothing has been decided at the moment," the source added. GM's China spokesman Henry Wong also had no direct comment on the matter. "We are a big auto company so we are always out... [read full story]