GM Dumps Suzuki Shares In Effort To Conserve Cash

General Motors Corp., seeking a federal bailout as its cash dwindles, will raise 22.4 billion yen ($230 million) by selling its 3 percent stake in Suzuki Motor Corp.

The Hamamatsu, Japan-based company will use cash to buy back its own shares tomorrow at 1,363 yen a share, it said in a statement today.

``We are responding to GM's need to let go of its stake to raise funds,'' said Suzuki Chairman Osamu Suzuki in the statement. ``This will not have an impact on our management policy.

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Whelan - 11/17/2008 12:33:17 PM

-3 Boost

There ya go, GM gets 22 billion. So they dont need the 25 billion baillout money cause they would not have gotten all of it. And getting 22 billion from selling off the suzuki stock works well.

Maybe Ford should look into Volvo and Mazda stock.

holmstar - 11/17/2008 2:03:03 PM

+5 Boost

The stock value is 230 million, not 2 billion. 230 million is barely a drop in the bucket for GM. They have a burn rate of over 1 billion per month right now. Based on that, this only adds a week to their viability.

holmstar - 11/17/2008 2:05:12 PM

+1 Boost

meant 22 billion (yen, not dollars)

Porschinator - 11/17/2008 3:45:02 PM

+1 Boost

Wow..people really are that dumb...lol. Anywas re-read it.

S4cabriofoxone - 11/17/2008 12:37:41 PM

0 Boost

As unknown as Suzuki is in the US this is actually a pretty big loss for them because Suzuki is, IIRC, the premier small car maker in Japan. I think it's a smart decision though. Now it's time to let Pontiac go, because with the deletion of the G8 and Solstice there will be no purpose for the brand.

TopGear - 11/17/2008 1:53:36 PM

-1 Boost

Suzuki is a big seller in a developing country like China. Now it's time to sell Saab and merge Pontiac, Saturn, and Chevy.

BMWpride - 11/18/2008 5:30:24 PM

+1 Boost

This is what I believe GM should do with the their brands:
Chevy: The heart and backbone of GM. Drop the Impala, Avalanche, Trail Blazer, and Equinox. Unsure about Traverse and Tahoe (which one to keep)
GMC: Kill everything (no need for rebadges that aren't better than their Chevy counterparts)
Buick: A step-below Cadillac. Axe the LaCrosse (The Malibu is on the same platform and looks to have a better fit and finish than the Buick) and add a rebadged Holden Commodore as the Park Avenue.
Saturn: What should be the fuel-efficient lineup for GM. Kill the Outlook, but leave Saturn unchanged.
Pontiac: Kill everything. The G6 is another rebadged Epsilon, the Solstice can be sold as the Saturn Sky, the G8 can be sold as a Buick (like in China), the Vibe can be sold as the Chevy Aveo, the Torrent is a Saturn Vue knockoff, the G5 is a Chevy Cobalt knockoff.
Hummer: Sell to Australian companies.
Cadillac: This brand is in the best shape right now, but some are holding it down a little bit. So I think Cadillac should axe the SRX, DTS (front drive shouldn't fly here), the Escalade EXT, and the XLR.
Saab: Sell to Fiat.

I know this does sound like a very radical plan but it gets rid of some rebadges and allows GM to sell more of a particular model. It could also help cus GM could later say "most-popular car in its class" or something along those lines.