Credit Crisis Solutions

Hard-up GM to sell Suzuki stake

General Motors is selling its 3% stake in the Japanese carmaker Suzuki for $230m (£156m) to raise cash.

Suzuki said it would buy back the stake, adding that it understood GM faced a need to secure funding.

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.

“We understand full well that GM faces a need to sell its shareholdings to secure funding,” Suzuki said.

GM has said it would cut jobs and costs and has also suspended merger talks with Chrysler to focus on current issues.