General Motors IS in fact selling bulk of its stake in Suzuki

General Motors IS in fact selling bulk of its stake in Suzuki

This is getting a bit more complicated than it had to be. A newspaper report claims that the US based automaker General Motors was considering selling off bulk of its stake in the Japanese automaker Suzuki.

The news called rippled in the industry but was countered by Suzuki who denied any such possibilities. However, it has now been confirmed by GM that they are in fact selling off much of their stake in the Japan based Suzuki.

GM is in a mess in their domestic market of United States and is undergoing a massive restructuring process. The company needs financial support and selling of a part of their stake in Suzuki would provide them with that.

General Motors has said that they are aiming to reduce their stake in Suzuki to as little as 3% from the current position of 20%. This would earn the company around USD 2 billion. The company had also recently sold off its 8.7% stake in fellow Japanese carmaker Subaru.

However, the two companies have come out in the media together claiming that this decision to lower the stake would not affect their business collaborations on various projects.