General Motors Sells Majority Stake in Suzuki Motors

Catherine Makino
Hong Kong
March 10, 2006

Japan's Suzuki Motor Corporation bought back a 17-percent stake from General Motors.

General Motors, the world's largest automaker, sold the stake as part of a restructuring plan and will receive about $2 billion from the sale.

The two companies said they will continue their close 25-year relationship and work together to create environmentally friendly cars.

Suzuki's chief executive officer, Osamu Suzuki, talked about General Motors' problems at a recent press conference. "We understand that G.M. needs to raise capital, but I really did not know G.M. was in trouble to this extent," said Suzuki. "They are in very deep trouble."

General Motors lost $8.6 billion last year and saw its market share fall.

This article is an excerpt from an Asian business report by the same name.