GM will sell its remaining stake in Suzuki Motor for 230 million US. The troubled automaker is selling off assets to raise cash as GM is losing about 2.3 billion US dollars a month at its current rate.
GM is in dire need of cash.
As it awaits word on possible bailouts by the US and German governments it has sold off its 3 percent stake in Suzuki Motor for 230 million US dollars.
But the sale is not likely to have much of an impact on GM's bottom line. GM burned through 6.9 billion US in cash in the 3rd quarter of this year and is losing about 2.3 billion a month at its current rate.
Suzuki Motor of Japan said it would buy back the GM owned shares for 22.4 billion Yen, or 1,363 Yen per share.
GM at one point owned about 20 percent of Suzuki shares which it started buying back in 1981. By 2006, it had sold most of its holdings in the Japanese automaker which makes mostly compact cars and small 4-wheel drive vehicles.
Suzuki Motor is a long-standing brand in Japan, a successful maker of motorbikes, and is the biggest selling automaker in the Indian market. The company says it will continue its joint projects with GM, which includes development of hybrid vehicles.