Desperately in need of cash, struggling U.S. auto giant General Motors Corp. is
selling its entire 3% stake in Suzuki Motor Co. back to the minicar specialist for ¥22.37 billion ($230 million).
Working with each other since August 1981, the companies said in a statement that they will continue with existing projects, including development collaboration on advanced automotive technologies for hybrid vehicles, and on entries in new emerging markets. One analyst
noted that "Suzuki needs someone -- they don't have the scale to develop next-generation cars."
This news comes as GM, which had a 20% stake in Japan's Suzuki two years ago, is planning to
increase its 34% stake in a JV co-owned by SAIC and Wuling Automobile. GM,
trying to improve its liquidity, is currently jockeying for billions in federal aid, saying it won't survive into next year as it faces the worst sales it's seen in decades. It's a
subject of much debate. -
Baz HiralalSee the Suzuki Motor press release
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