In an effort to shore up some much needed cash, General Motors will sell its remaining 3.02-percent stake in Suzuki , the companies confirmed Monday morning. A few years ago, GM had a 20 percent stake in the Japanese automaker, but sold a 17 percent stake in 2006. Suzuki announced it will buy the 3 percent stake back from GM for $230 million.
GM’s ownership in Suzuki began with a 5.3 percent stake in 1981. That figure shrank over the subsequent years to 3.5 percent, but GM raised its investment to 10 percent in 1998, and then 20 percent in 2001. In recent years, GM also sold its stakes in Isuzu and Subaru .
The sale of 17 percent in 2006 left GM with an additional $2 billion, making today’s sale less lucrative per share. Still, $230 million a large chunk of money — but certainly not enough to save a company burning through $1 billion a month. Coupled with cost reductions, though, it’s a move in the right direction.
