By mkbhatia
Wednesday, Oct 5th, 2005 @ 8:26 am

General Motors has agreed to sell an 8.7 percent stake in Fuji Heavy — the maker of Subaru -brand cars — to rival Toyota . Toyota will pay about $315 million in cash for 68 million shares, making it the top shareholder in the company. The sale may be a sign of serious problems at the automaker. “It’s surprising how fast GM is selling off the family silver, said Graeme Maxton, a director of the Economist Intelligence Unit in Hong Kong. “It rings alarm bells.” Fuji Heavy generates about 90 percent of sales from its automobile business. “We’ve had a good partnership,” said Troy Clarke, president of GM Asia Pacific in a statement. “There were not enough collaborative projects to sustain the alliance.”

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