Suzuki and GM will continue their business tie-up but we decided to change our financial relationship. GM offered to keep holding a three percent stakes themselves as they wanted to keep good relations with us. They must be in serious need of cash.

—Suzuki chairman Osamu Suzuki at the press conference

The Japanese press had been predicting a complete unwinding of the strategic relationship between GM and Suzuki, which GM had denied in a statement the day before making the sale announcement.

GM will retain 16.3 million shares, and will continue working with Suzuki on specific projects, including collaboration in fuel cell and hybrid systems development, joint operation of CAMI Automotive, Inc. in Canada, the manufacture of a new medium-size SUV at the joint venture facility, and the cross-supply of OEM vehicles will continue. In addition, GM and Suzuki plan to work together on a proposed new automatic transmission program.

GM has held an equity stake in Suzuki since 1981, when it purchased approximately 5.3% of the Suzuki shares outstanding. GM’s stake was diluted to 3.5% in subsequent years, but in 1998 GM increased its holding in Suzuki to 10%, and to slightly more than 20% in 2001. During this time, the companies have been involved in various joint projects in product development, advanced technology, global purchasing and supply chain management, and product distribution.

In October 2005, GM sold off its 20% equity stake in Fuji Heavy Industries (FHI), the maker of Subarus. Toyota bought slightly less than half of those shares, and Toyota and FHI have ended up working closely together. (Earlier post.)