General Motors CEO Rick Wagoner mentioned last week that, in addition to selling the HUMMER brand, other assets were being evaluated for sale, as well. GM has announced that it is selling all of its remaining stock in Suzuki. GM owns about 3% of the Japanese automaker’s traded stock making the cash infusion come in around $230 million. More after the jump.
Despite selling off its remaining interest in Suzuki, GM is still very much interested in continuing the two automakers’ working relationship and may end up repurchasing a stake in the future. GM has at one point held a 20% interest in Suzuki, but 2006 it sold 17.4%.
The Press Release from GM:
GM Sells Equity Stake in Suzuki Motor Corp.
Detroit – General Motors Corp. announced today it would sell its remaining equity stake in Suzuki Motor Corp. but based on a mutual agreement would continue the implementation and expansion of its business relationships with the company.
GM plans to sell 16,413,000 Suzuki shares, which is equal to 3 percent of Suzuki’s total issued common stock, on the open market. Based on today’s market price, the shares are worth approximately $230 million.
GM has held an equity stake in Suzuki since 1981, when it purchased approximately 5.3 percent of the Suzuki shares outstanding. GM’s stake was diluted to 3.5 percent in subsequent years, but in 1998 GM increased its holding in Suzuki to 10 percent, and to slightly over 20 percent in 2001. In 2006, GM sold a 17.4 percent stake in Suzuki.
Suzuki and GM will continue promoting and implementing their existing projects, including development and collaboration on advanced technologies such as hybrids and fuel cells; joint operation of their CAMI vehicle manufacturing joint venture in Canada; collaboration on the development of powertrains; the cross-supply of OEM vehicles; joint global purchasing activities; and collaboration on entries in new emerging markets.
“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.”
Since this is a motorcycle blog, I won’t get to into the details of the Big 3 bailout, but Wagoner showed up to Capitol Hill today on his private at the tune of $20,000. Now that’s leading by example.