General Motors Says So Long to Suzuki
General Motors has made the first step towards what many in the auto industry feel will be the big three’s fate if bailouts by Government are not initiated. GM is cutting one of their subsidiary companies – Suzuki. Why the bold move? Simple – GM needs cash and fast!
GM has sold off its 3% stake in Suzuki Motor for $230 million dollars US. According to a press release via World Car Fans, “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.”
Don’t think this is an end of Suzuki, the Japanese motor company said it plans to buy back the GM owned shares for 22.4 billion Yen, about 1,363 Yen per share. Let’s hope our favorite car brand makes it out of these financial times alive.
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