Suzuki sells its 50% stake to GM in CAMI joint-venture

Article by Christian A., on August 29, 2010

Suzuki Motor Corp.'s move to sell its 50% stake to General Motors Co. ends their CAMI joint assembly operation in Canada, cutting one of the few remaining links between the partners.

No reason was given for the timing or pricing of the sale that had been announced very recently. Due to declining sales of the XL7 SUV, Suzuki halted production at its Ingersoll, Ontario, plant last summer.

Last month, GM revealed that it would invest $85.1 million to retool the plant and pump up production by 40,000 vehicles. CAMI currently makes the Chevrolet Equinox and GMC Terrain.

 It was GM that approached Suzuki with a proposal with regards to the stake, according to Suzuki spokesman Hideki Taguchi. He said that Suzuki won´t be taking a loss on the sale and he reasons that since it has no model in production there and with no plans for one, the position of CAMI has gone down.

The CAMI partnership had begun in November 1986 when GM sought out Suzuki to gain knowledge about Japanese production methods. But it was in 1981 that the two companies first linked up when GM bought an initial 5.3 percent stake in the Japanese automaker.

GM's holding increased to more than 20 percent in 2001 but this was later reduced to 3 percent as GM was forced to dump a huge part of its holdings when it faced bankruptcy late last year.

Topics: suzuki, gm

If you liked the article, share on:

Comments

Recommended

Famous designer of certain Ferrari vehicles like the Enzo Ferrari and the P4/5, Ken Okuyama has revealed another one of his designs at the 2017 Pebble Beach Concours over the...
by - August 21, 2017
The current generation of the BMW M3 (F80) sedan isn’t just sporty and luxurious in terms of looks, but also in terms of performance. Because of its athletic appeal, the...
by - August 21, 2017
A lot of us know Singer Vehicle Design and their signature work of reimagining Porsche 911s, and making them look like hot rods from the 70s. They are not alone...
by - August 20, 2017
August 17, 2017 is a sad day for the Dodge Viper, its fans, enthusiasts and its admirers. It is the day when the last Dodge Viper rolled off the assembly...
by - August 20, 2017
A few months ago, Mercedes-Benz promised that they will be treating everyone to a “big surprise” during the Monterey Car Week. And true enough, many of us were stunned as...
by - August 19, 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