GM to Sell Remaining Stake in Suzuki

Will Maintain Business Ties With Fuji Industries Company After Giving Away $230M Worth of Shares

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DETROIT ( -- General Motors Corp., which could run out of operating cash in the coming months, today said it will sell its remaining equity stake in Japan's Suzuki Motor Corp. The auto giant said it plans to sell 16.4 million shares of Suzuki stock, or 3% of the Fuji Industries-owned company. The shares are worth an estimated $230 million, based on today's market price, GM said.
Rick Wagoner
Rick Wagoner

"We highly value our strategic relationship with Suzuki," said GM Chairman-CEO Rick Wagoner in a statement. "Despite the sale of our remaining Suzuki shares, this action will have no impact on our existing bilateral business relationships. We look forward to continue building on our success to date with our long-term partner."

Mutual agreement
GM said it has a mutual agreement with Suzuki to maintain and expand their business relationship, including promoting and implementing existing projects. That ongoing relationship, GM announced, will include co-developing advanced technologies such as hybrids and fuel cells; joint operation of their manufacturing venture in Canada; collaboration on the development of powertrains; joint global-purchasing activities; and collaboration on entries in new emerging markets.

GM first acquired a stake in Suzuki in 1981, when it bought 5.3% of its outstanding shares. Although the automaker's investment was diluted to 3.5% in later years, in 1998 GM increased its investment to 10%, and to just more than 20% in 2001. In 2006, GM sold a 17.4 % stake in Suzuki.
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