GM sells Suzuki stake to raise £156m
- Struggling car maker raises cash
- Suzuki buys back shares for £156m
- GM still desperate for money
Struggling car maker General Motors is selling its remaining 3% stake in Japanese car maker Suzuki for $231 million (£156m) to raise cash.
Suzuki has agreed to buy back the stake after GM reported a net loss of $2.5 billion in the third quarter of 2008, plunging its future into doubt.
Reports suggest GM has enough cash reserves to last only until January, and as a result has been trying to secure an emergency state loan along with its Detroit competitors.
Suzuki, which specialises in small cars, said the two companies would continue to cooperate in a number of joint projects, including developing new technologies. Their partnership started in 1981.
The US car maker had already sold a 17% stake in Suzuki, in 2006.
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