Detroit, Michigan – General Motors announced today it would sell its remaining equity stake in Suzuki Motor Corporation 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 three per cent 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 per cent of the Suzuki shares outstanding. GM’s stake was diluted to 3.5 per cent in subsequent years, but in 1998 GM increased its holding in Suzuki to 10 per cent, and to slightly over 20 per cent 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.”
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.