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.
11/17, 11:47 AM
posted by:
mayer_ray_nagin
I think the saw how lame the production version of the Kizashi is turning out and want to abandon their stake before Suzuki files bankrupcy.
11/17, 12:12 PM
posted by:
freeyellow2000
It looks like GM is trying to scoop water out of the sinking ship until Obama can help….
I just hope it shrink faster than they can scoop out…..
11/17, 12:23 PM
posted by:
johnnycanuck
This could get messy. That won’t even keep them in tampons for the whole 5 days.
11/17, 1:24 PM
posted by:
Need more oil for GM
Good, no need to GM to prop up sales for a bunch of Sushi chefs. Suzuki is no different than the rest of the scumbags in Japan. It’s time to cut the dead weight.
11/17, 2:05 PM
posted by:
renzogtr
Hey Need more oil for GM why isn’t Toyota, Honda and Nissan going down the Tubs huh? Scumbags in Japan must know somthing huh
11/17, 3:12 PM
posted by:
andy
Toyota doesnt have to deal with unions and isnt based out of a country with such a **** economy
11/17, 4:43 PM
posted by:
cwa107
Good move on GM’s part. Time to sell off some divisions to raise cash too.
11/17, 11:43 PM
posted by:
pursang
cwa what divisions would you have them get rid of? No one likes Buick but I believe (no idea for sure) it’s one of their better selling brands, the other ones serve their purpose (besides hummer but no one will take that hunk of ****).