News - General Motors

GM to sell Suzuki interests

Giants: GM wants out of Suzuki and a fuel-cell tech deal with Toyota.

GM to bail out of Suzuki, but extends deal on emissions and safety tech with Toyota

General Motors logo9 Mar 2006

GENERAL Motors is in the process of selling 17.4 per cent of its 20.4 per cent stake in Suzuki, raising about $US2 billion in cash from the sale "to enhance the strength of GM’s balance sheet and liquidity position".

Overseas reports indicate that Suzuki will keep its 11 per cent stake in GM Daewoo in South Korea and that Suzuki and GM will continue joint-venture projects and shared production initiatives.

There is no word yet on whether GM will also sell its 12 per cent stake in Isuzu Motors.

Meanwhile, GM will terminate its joint research programs on fuel-cell vehicles and related technology with Toyota at the end of this month.

According to overseas reports the world’s two largest car-makers have, in turn, agreed to extend current co-operation agreements on safety and emissions-reducing technology for another two years.

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