China's biggest car maker warns on 2008 profit

Shanghai-headquartered automaker SAIC Motor Corp. warned Friday its profit for 2008 may be more than halved because of slowing sales growth and losses related to its investment in South Korea's Ssangyong Motor Co.

SAIC, China's largest car maker, had a net profit of 4,63 billion yuan ($677 million) in 2007.

Earlier this month Ssangyong Motor suspended production at factories and filed for bankruptcy protect with a South Korean court.SAIC hold a 51% stake in the ailing firm and had provided it with $45 million in financial aid as of Dec. 31,


SAIC is better known a joint venture partner for General Motors and Volkswagen AG's units in China.