GM to Sell Stake in Suzuki for $230 Million

In an effort to stay afloat while congress decides on a bailout plan for The Big 3, GM has decided to sell its entire stake in Suzuki Motor Corp. for 22.37 billion yen ($230 million).

Suzuki is going to buy back the 3.02 percent stake from GM. Suzuki stated that it is necessary for the automaker to buy back the stake from GM to help the ailing automaker. Although Suzuki is buying the 3.02 percent stake, the two automakers will continue to have a partnership in the future, which includes the development of hybrid vehicles and SUVs in Canada.

“We fully understand the necessity for GM to raise cash,” Suzuki chairman and chief executive Osamu Suzuki said in a statement.

The GM-Suzuki partnership dates back to 1981.

Full Story: The Detroit News

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