Page last updated at 09:43 GMT, Monday, 17 November 2008

Hard-up GM to sell Suzuki stake

GM vehicles
GM sold a 17% stake in Suzuki in 2006

General Motors is selling its 3% stake in the Japanese carmaker Suzuki for $230m (156m) to raise cash.

Suzuki said it would buy back the stake, adding that it understood GM faced a need to secure funding.

GM has reported a net loss of $2.5bn in the third quarter and has been trying to secure an emergency government loan along with its Detroit competitors.

The "Big Three" US car firms Chrysler, Ford and GM are seeking a total $25bn in federal aid.

Suzuki, which specialises in small cars, said the two companies would continue to cooperate in a number of joint projects, including developing new technologies. Their partnership started in 1981.

"We understand full well that GM faces a need to sell its shareholdings to secure funding," Suzuki said.

The US carmaker had already sold a 17% stake in Suzuki, in 2006.

US car firms companies have been hit by falling US sales and growing losses.

GM has said it would cut jobs and costs and has also suspended merger talks with Chrysler to focus on current issues.

Print Sponsor


SEE ALSO
US carmakers rescue plan in doubt
14 Nov 08 |  Business
Triple whammy hits US carmakers
13 Nov 08 |  Business
GM shares decline to 60-year low
10 Nov 08 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC iD

Sign in

BBC navigation

Copyright © 2019 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific