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General Motors considering selling Isuzu Motors shares
US based automotive giant General Motors is working hard on cutting on losses and getting back on the profitability track. The company said in a statement on Thursday that it is currently discussing a sale of its stake in Japanese truck maker Isuzu Motors Ltd.
The company has already sold most of their stake in the Japanese automotive firm Suzuki for much-needed cash. Last year saw GM selling its entire 20 percent stake in another Japanese automaker, Fuji Heavy Industries Ltd.
General Motors made losses of $10.6 billion in 2005 and is facing serious competition from their Japanese rivals Toyota, Honda, and Nissan. South Korean automaker Hyundai is also becoming a strong contender in the market.
They currently hold 7.9 percent stake in Isuzu which itself is worth around $320 million at current market price. Isuzu said in a statement on these new reports: “We recognize GM is at a crucial point in turning its North American business to profit, and is continuously reviewing its portfolio. We understand GM’s need to strengthen its balance sheet and liquidity and agreed to discuss with GM.”