GM and Suzuki to end CAMI partnership

By Mark Kleis - Posted December 4th 2009

General Motors and Suzuki’s relationship dates as far back as 1981, but a post-bankruptcy era and a struggling market have forced the two apart. GM and Suzuki’s joint Canadian plant has now been obtained solely by GM.

GM first began its quest for a partnership with Suzuki in 1981 when it obtained a 5.3 percent stake in the Japanese automaker. Eventually, by 2001 GM’s stake had grown as high as 20 percent, but as GM was faced with bankruptcy it was forced to sell off its remaining share in Suzuki.

GM and Suzuki had shared the CAMI assembly plant in Ingersoll, Ontario but ownership has now shifted entirely to GM. Suzuki sold its 50 percent stake in the plant to GM for an undisclosed amount after being approached by GM about the potential sale.

Suzuki’s spokesman, Hideki Taguchi, said that they will not be taking any type of loss with the sale of their stake in the plant.

Taguchi said, “We have no model being produced there and no plans to introduce one.”

In wake of the sale, GM has announced its intentions to retool the plant and increase production by as many as 40,000 vehicles. GM announced that it will be investing $85.1 million during the retooling process.

The CAMI plant currently produces GM’s Chevrolet Equinox and GMC Terrain.

Suzuki had previously been producing the XL7 SUV at the plant, but with sales down Suzuki ended production at the CAMI plant last summer.