GM has announced it will sell its entire 3.02% ($230 million) stake back to Suzuki as the auto giant tries raise much needed cash before it goes into bankruptcy from becoming insolvent. “We fully understand the necessity for GM to raise cash,” Suzuki chairman and CEO Osamu Suzuki said in a statement. Suzuki also maintains it will actively continue a business relationship with GM. The new capital will not make a material difference for GM as it is going to continue to burn about $1.6 billion per month. GM is now seeking part of a $25 billion government issued bailout loan for Ford, Chrysler, and GM. In 2006, GM sold a 17% stake in Suzuki leaving it with the reminder 3% it has sold now. GM now longer has any stake in Suzuki.
Make sure to check out my other articles about GM, including this one where I give my position about why we should bail GM out.
Tags: 
Questions? Write to Hercules K at hercules@business2press.com
Facebook
November 17th, 2008 at 5:26 pm
No we should not bail out GM. Nor should be bail out the greedy banks.
We should lend all assets of GM to Toyota to manage for 10 years, during which time they get all profits. Then after 10 years, Toyota would be forced to divest in GM, providing it with the designs they used. If Japanese management can make a profit right now, and Americans can’t, then the capitalist system says, kick out the corrupt US management out.
I’m sick and tired of corrupt assholes getting away with it.
November 17th, 2008 at 10:42 pm
I cannot believe these idiots, why r they selling their investment where it wont even last them 1 week, the government is gonna bail them and now i heard on the news Canadian government is gonna help the automakers out too
February 24th, 2009 at 11:14 pm
oneman got a point. But I think this is not because of the corrupt. This problem is because government miscalculated the money going out. We should help GM to continue business. Since we will all profit if they continue.
February 24th, 2009 at 11:23 pm
I think the problem is that these loans will just snowball into more loans…where do we draw the line…..