General Motors has said it is selling its 7.9% stake in Japan’s Isuzu for almost 250 million euros. It is part of the effort by the world’s biggest carmaker to raise much-needed cash to revive its ailing business. However the US company will continue a business alliance with Isuzu, including the joint development and manufacture of pickups and engines.
They have had a relationship since the early 1970s. At one stage GM owned 49% of the Japanese maker of trucks and four-by-four vehicles. Earlier this month GM cut its stake in Japan’s Suzuki to just 3% from 20%. Last October it sold its entire 20% holding in Fuji Heavy Industries, the maker of Subaru vehicles.
The rapid sale of long-held Japanese assets demonstrates the US carmaker’s need to urgently improve its cash flow. General Motors lost 8.75 billion euros last year and, as part of its turnaround effort, plans to close twelve plants in North America by 2008.