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GM to sell 20 pct stake in Suzuki Motor for $2.33B

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GM to sell 20 pct stake in Suzuki Motor - report

Sun Mar 5, 2006am ET

TOKYO, March 5 (Reuters) - General Motors Corp is planning to sell its 20 percent stake in Japanese compact-car maker Suzuki Motor Corp, the economic daily Nihon Keizai Shimbun (Nikkei) reported on Sunday.

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Full URL: http://yahoo.reuters.com/news/articlehybri..._T268646&rpc=44

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wtf...

why...?

Why not?

I don't see any reason to keep Suzuki... what does GM gain by it? Right now, GM needs money, and I don't think any resources Suzuki can offer GM are worth $2.33 billion. With that, GM can develop some kickass products.

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Guest Josh

Ouch! That hurts Suzuki. With this and the impending cancellation of their codevelopment of vehicles it's safe to say Suzuki will pull out of North America for good.

But this begs the question, isn't GM thinking about bringing a version of the Swift over to compete with the Chinese towards the end of the decade? With the sale of Suzuki how could that still be feasible, especially at a profit generating stand point.

Furthermore, I wonder what Suzuki has cost GM compared to the $2.33 Billion it stands to make off this sale.

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Sorry this sounds crazy to me. Daewoo peddles their car to Suzuki which helps keep them making cars at a profit. Also GM has stake in a company that is doing well. Not to mention Suzuki is a way for GM to sell products to Japan. 2 Billion Is good but I would have rather they sell Isuzu stock than this!

All I have to say is we better see some great products with this money.

Edited by rueben44

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Sorry this sounds crazy to me. Daewoo peddles their car to Suzuki which helps keep them making cars at a profit. Also GM has stake in a company that is doing well. Not to mention Suzuki is a way for GM to sell products to Japan. 2 Billion Is good but I would have rather they sell Isuzu stock than this!

All I have to say is we better see some great products with this money.

Does GM know enough about the Duramax to redesign it from the ground up?

if GM pulled out of isuzu and suzuki they would both pull out of the US market, they both dont make anything competative...

thats less little mouths to feed... if GM sold that stock, the stock would probably fall very quickly...

this seems like a wise thing and a bad idea... but it seems GM hasnt spent much R&D with suzuki... i could be wrong, but...

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Suzuki doesn't have much to offer GM anyway. They are good with small engines, but that is still of little benefit to GM, outside of sub-compact cars. Isuzi is much more valuable to GM with their experience in diesels, such as the duramax, and I'm sure they probably had a hand in developing the European diesels as well.

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Suzuki doesn't have much to offer GM anyway. They are good with small engines, but that is still of little benefit to GM, outside of sub-compact cars. Isuzi is much more valuable to GM with their experience in diesels, such as the duramax, and I'm sure they probably had a hand in developing the European diesels as well.

for what i've heard GM is going to be designing a 5.3 dsl under the chevy brand, or whatever... and it'll just be a chevy dsl instead of some kind of name brand duramax... because of the tapped out capacity on the duramax we will be able to see this 5.3 in the SUV's...

so if this is the case, GM already has the info they need from izusu what else could we take from them before liquidating that asset?

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Technically all Isuzu's light diesel engineering capability and much of the production capacity outside Japan is owned by GM already. Isuzu talks like they are doing it, but when you dig down you find out that it is all GM now. BTW Suzuki would still be a major shareholder in GM Daewoo, so no reason to think supply of Forenza's would be disrupted. There never were any plans for GM to bring in the Swift, although Suzuki was considering it for the next generation. GM may have simply decided the strategic shareholding is redundant—any future co-operation can be done without it.

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Technically all Isuzu's light diesel engineering capability and much of the production capacity outside Japan is owned by GM already. Isuzu talks like they are doing it, but when you dig down you find out that it is all GM now. BTW Suzuki would still be a major shareholder in GM Daewoo, so no reason to think supply of Forenza's would be disrupted. There never were any plans for GM to bring in the Swift, although Suzuki was considering it for the next generation. GM may have simply decided the strategic shareholding is redundant—any future co-operation can be done without it.

in the transaction Suzuki would reduce their ownership of daewoo...

"Suzuki, in turn, is considering selling some of its 11 percent stake in GM's South Korean subsidiary, GM Daewoo Auto & Technology Co, Kyodo News Agency said, citing unnamed sources familiar with the matter."

Edited by Newbiewar

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But this begs the question, isn't GM thinking about bringing a version of the Swift over to compete with the Chinese towards the end of the decade? With the sale of Suzuki how could that still be feasible, especially at a profit generating stand point.

which swift, our swift or the Euro swift?

Posted Image

Posted Image

but in Europe, they have a toally different model

Posted Imagehttp://automobile.nouvelobs.com/mag/040920/suzuki_swift/images/270.jpg

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Ouch! That hurts Suzuki. With this and the impending cancellation of their codevelopment of vehicles it's safe to say Suzuki will pull out of North America for good.

But this begs the question, isn't GM thinking about bringing a version of the Swift over to compete with the Chinese towards the end of the decade? With the sale of Suzuki how could that still be feasible, especially at a profit generating stand point.

Furthermore, I wonder what Suzuki has cost GM compared to the $2.33 Billion it stands to make off this sale.

To show you how inept Suzuki management is........(this according to a friend of mine that worked at Suzuki....)

As the new Swift was being developed for Europe/Great Britain, the Japanese in Japan offered the new car to the Japanese management here in the U.S.A....and they resoundingly turned it down.

THEN the dealer body started seeing the new Swift in the magazines, etc....and were CRYING for the car. Alas.....at this time, it was too late to bring it over here because it doesn't meet U.S. certification and would cost way too much to redesign it to meet our standards.

The dealers apparently love the MINI-esque styling, the much-improved interior styling/quality, and the relative affordability that the car would have brought to the current Suzuki line.

Too bad....I think the new Swift could have been a much-nicer alternative to cars such as the Aveo, Yaris, Fit, and Verso.

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Do you see Toyota or Honda buying stakes in foreign automakers? Of course not.

GM needs to dump its stakes in foreign car makers, and use that money to invest in its own products.

That's how Toyota and Honda are successful.

That's how the old GM was successful back when they had 50% of the U.S. market.

Fiat, Isuzu, Subaru, Suzuki... All a global coalition of losers. GM doesn't need them.

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Do you see Toyota or Honda buying stakes in foreign automakers?  Of course not.

GM needs to dump its stakes in foreign car makers, and use that money to invest in its own products.

That's how Toyota and Honda are successful.

That's how the old GM was successful back when they had 50% of the U.S. market.

Fiat, Isuzu, Subaru, Suzuki...  All a global coalition of losers.  GM doesn't need them.

Uh, you need to recheck your facts before you declare Isuzu, Subaru, and specifically Suzuki as "global losers."

Fiat...? Maybe more of an argument there...

But you can't base a declaration of a brand being a "loser" just because it doesn't do volume in the U.S.A.

Last time I checked, Suzuki was the fourth-largest Japanese manufacturer world-wide....and wildly profitable to boot. Not to mention the successes they've had with motorcycles, ATVs, and (to a smaller extent) outboard boat motors.

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Uh, you need to recheck your facts before you declare Isuzu, Subaru, and specifically Suzuki as "global losers."

Fiat...?  Maybe more of an argument there...

But you can't base a declaration of a brand being a "loser" just because it doesn't do volume in the U.S.A.

Last time I checked, Suzuki was the fourth-largest Japanese manufacturer world-wide....and wildly profitable to boot.  Not to mention the successes they've had with motorcycles, ATVs, and (to a smaller extent) outboard boat motors.

yea suzuki i believe is the worlds largest motorcycle seller... i could be wrong, but last i checked...

also they are quite powerful...

and izusu has a good grip on dsl technology and medium duty trucks...

and subaru also builds pretty high quality cars, they dont want to sell a lot tho... they arent after volume... or so it seems... cause if they wanted to grow they could...

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I don't know about this... On the one hand, it gives GM a little more money to work with. On the other hand, Suzuki would have been an excellent window into Japan for GM to import cars. I guess if they need the cash that badly...

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I am kind of on the fence with this one. All of the pros and cons cancel each other out and a big question mark is left.

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Suzuki's motorcycles aren't going to help GM in America.

Subaru's only collaboration with GM, the Saab 9-2X was a huge flop. It's butt ugly AWD cars sell well in upstate NY and Colorado, but don't make much of an impact in this country beyond that. :nono:

Isuzu? Let's not even go there.

If GM owned a 20% stake in say Toyota, or Honda, or even BMW, now that would be something.

But it bought up small chunks in all these companies that at the end of the day have been pretty much useless in terms of helping GM either in America or globally. And it's time to dump them, and put that money towards building cars that people actually want to buy.

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oh guys, you don't see this?

CMON!

this means GM will be selling all the Daewoos in the US now, not Suzuki!

this clears the conflict to enable GM to start loading up the showrooms with all the cheap to build GMDAT product and not have to worry about having a same version of it in the Suzuki showrooms!

in 5 years, half of chevy's lineup will be Daewoos now!

Edited by regfootball

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I don't know about this... On the one hand, it gives GM a little more money to work with. On the other hand, Suzuki would have been an excellent window into Japan for GM to import cars. I guess if they need the cash that badly...

You're making it seem as if this tie up happened two months ago. GM has owned part of Suzuki for a long time, and they've haven't exported jack sh|t to Japan. Suzuki doesn't want GM selling American cars in Japan. The Japanese don't want GM selling American cars in Japan. It's as simple as that. GM's turnaround will take place in America, not in Japan.

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this clears the conflict to enable GM to start loading up the showrooms with all the cheap to build GMDAT product and not have to worry about having a same version of it in the Suzuki showrooms!

in 5 years, half of chevy's lineup will be Daewoos now!

That is a very possible scenario. North American trucks and Korean cars.

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