Hughes Spinoff Doubtful, GM Says

General Motors Corp. Chairman John F. Smith Jr. cast doubt that the auto maker will spin off Hughes Electronics, saying the satellite unit is an important part of GM’s growth plan.

Some analysts and investors have urged the world’s largest auto maker to boost shareholder value by selling all or part of Los Angeles-based Hughes, which makes satellites and communications networks and provides the DirecTV satellite television service.

Hughes anticipates 20% annual sales growth and has “tremendous” importance to GM as vehicles are equipped with more electronic systems, such as navigation equipment and Internet linkups, Smith said.

“Hughes is very much part of our growth strategy,” the chairman said Monday at GM’s annual shareholder meeting in Wilmington, Del. “Why would we want to spin that off?”

In a separate development, GM said it has made some progress in talks to avoid a United Auto Workers strike in Flint, Mich.

Both sides talked during the weekend at the stamping plant, where the union is threatening to strike Thursday.