The General Motors Corp. group has acquired a combined 20.1 percent equity stake in Suzuki Motor Corp., Japan's top maker of minivehicles, Suzuki Motor said Thursday.
The GM group's stake was bolstered Wednesday when General Motors of Canada Ltd., a wholly owned subsidiary, purchased newly floated Suzuki shares exclusively allocated to the unit.
As a result, the Ontario-based unit now owns 11 percent of Suzuki, with the share acquisition pushing down the parent company's stake in Suzuki from 10 percent to 9.1 percent, it said.
The deal is in line with an agreement made in September between GM and Suzuki, under which GM was to double its stake in Suzuki to strengthen cooperation between the two automakers in Asia's compact car market.
Suzuki is known for its expertise in the production of minivehicles as well as in four-wheel-drive sport utility vehicle technology.
Isuzu SUVs doubted
NEW YORK (Kyodo) General Motors Corp., a major shareholder in Isuzu Motors Ltd., cast doubt Wednesday on the viability of the Japanese automaker's sport utility vehicle business.
GM Vice Chairman and Chief Financial Officer John Devine told reporters in Detroit that while Isuzu has continued to show strength in the commercial vehicle and diesel engine market, its SUV share was relatively small.
While acknowledging that the decision on whether to continue SUV endeavors was for Isuzu to make, Devine indicated that GM, which is restructuring to absorb heavy losses in its fourth quarter, was skeptical of Isuzu's chances for success.
Devine said as far as he knew, Isuzu is not planning to abandon its SUV business.
Isuzu currently markets its Trawler SUV in the United States and has plans to launch a new model this spring.