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
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