GM seeks smaller stake in truck manufacturer Isuzu, an insider reveals

Article by Christian A., on May 3, 2012

General Motors Co. is currently seeking a smaller share (compared to its initial proposal) of Isuzu Motors, which wants to stay independent, an individual familiar to the situation revealed. Initially, GM sought to have a controlling share in the Japanese truck manufacturer that’s equivalent to an investment valued at around $3 billion. 

GM is eager to tap into the strength of Isuzu in the markets in Southeast Asia as well as its diesel technology. The two companies were once equity partners for 35 years so if they enter a deal, it would not be new ground. At one point, the U.S.-based vehicle manufacturer owned up to 49% in Isuzu prior to selling the holding down, thwarted by Isuzu losses at the time and later being in dire need of cash.

In 2006, its last 7.9% share was sold for $300 million. Since it exited a government-funded bankruptcy restructuring procedure in 2009, GM has started to build new partnerships through initiatives spearheaded by GM Vice Chairman Steve Girsky. In March, GM concurred to paying $423 million for a 7% stake in French automaker PSA.

In August last year, Girsky closed a deal to partner with Korean conglomerate LG Corp in developing electric vehicles together. The current discussions are still very much preliminary, according to the insider. 

GM's re-emergence as a strategic partner would help Isuzu with its goal of creating hybrid and other technologies while environmental regulations all over the globe become more restrictive.

The two companies also are working together in sales in South Africa and Latin America. With a share of 33.4% in Japan, the stakeholder gets veto powers over boardroom decisions. It would be worth around $3.2 billion at the current share price of Isuzu. The Nikkei business daily reported that GM is seeking a holding of around 10%.

Topics: gm, isuzu

If you liked the article, share on:

Pin It

Comments

Recommended

Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Sorry to say this to the Sport Quattro Concept fanatics. If you guys have been hoping for the production of this iconic concept to begin, prepare for your dreams to...
by - March 27, 2017
South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries