GM Hungry for Money, Sells Remaining Suzuki Stake

General Motors continues its race for money with a new move, this time planning to sell the remaining Suzuki stake for no less than $230 million, according to a statement signed by GM and released to the press. The US-based company is to sell 16,413,000 shares, which represent 3 percent of the total Suzuki stock, estimated at $230 million. Even so, General Motors and Suzuki will continue to collaborate on the automotive industry, the two companies stated, with special focus on hybrids and fuel cells.

"We highly value our strategic relationship with Suzuki," said Rick Wagoner, GM chairman and chief executive officer. "Despite the sale of our remaining Suzuki shares, this action will have no impact on our existing bilateral business relationships. We look forward to continue building on our success to date with our long-term partner."

General Motors first purchased an equity stake in Suzuki in 1981 when it bought approximately 5.3 percent of the total shares. GM's stake was then reduced to 3.5 percent with a new increase in 1998 when General Motors re-purchased an additional 7.5 percent. GM's Suzuki stake grew to 20 percent in 2001, but in 2006 the Detroit-based company decided to sell no less than 17.4 percent of its shares.

Due to the global recession, General Motors is now forced to sell its Suzuki stake but the two companies have already discussed about a potential buyback in case the US company manages to get out of the crisis and revamp sales. “Suzuki and GM also agreed that they would discuss the repurchase of Suzuki shares by GM, should GM express its desire to do so at a future date,” the two companies wrote in a press statement.