logo
Share SHARE
FONT-SIZE Plus   Neg

Reports: GM To Hold Talks With Isuzu On Acquiring 10% Stake

General Motors Co. (GM) will hold talks with Isuzu Motors Ltd. to acquire a stake of about 10 percent in the Japanese truckmaker, according to media reports over the weekend.

Through a capital and operational alliance, the companies plan to launch joint projects for commercial vehicles in Asia as well as Central and South America.

The two companies reportedly expect to commence talks in early May and are working on arranging a meeting between GM Chief Executive Officer Dan Akerson as well as Isuzu President Susumu Hosoi.

If the talks prove fruitful, General Motors may emerge as Isuzu's largest shareholder. Japanese trading house Mitsubishi Corp. is currently the largest shareholder in Isuzu with a 9.2 percent stake and cooperates with Isuzu in its operations in Thailand.

GM earlier had a 35-year capital alliance with Isuzu that was scrapped during the U.S. automaker's 2006 restructuring. At that time, GM held a 7.9 percent stake in Isuzu.

Toyota Motor Corp. (TM) bought a 5.9 percent stake in Isuzu after the earlier capital alliance between Isuzu and GM ended in 2006. A revival of the alliance between GM and Isuzu could likely trigger a response from Toyota.

According to reports, Isuzu might also end capital tie-up talks with Volkswagen AG (VLKAY.PK), although it might continue discussions on supplying pickup trucks to Volkswagen in Thailand.

GM closed Friday's trading on the NYSE at $23.50, down $0.22 or 0.93 percent on a volume of 10.50 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Taxi-hailing company Uber and its rival Careem has suspended their services in Abu Dhabi, the capital of the United Arab Emirates, since Saturday, reports said. Uber said the move was temporary, and did not explain the reason for suspension of services. Even after two years of thoroughly searching across the Indian Ocean, using modern technologies and devices, there is no clue about the Malaysian airline that vanished on March 8, 2014. Internet access is growing worldwide, but there is still a long way to go before the entire world is completely wired, a study from the Pew Research Center has found. The study also noted that men have greater access to the Internet than women in many nations.
comments powered by Disqus
Follow RTT