Cash-strapped General Motors Corp. is selling the shares it holds in truck maker Isuzu to two Japanese trading companies and a bank for about $300 million to fund its turnaround in North America, the U.S. automaker said Tuesday.
GM said last month it was selling the 7.9 percent stake it held in Isuzu Motors Ltd., or about 90 million shares, but will keep its business partnership with Isuzu, such as joint development and manufacturing of trucks and diesel engines.
The Detroit-based manufacturer was at one time the top stakeholder in Isuzu.
Mitsubishi Corp., which has a joint venture with Isuzu to make and sell trucks in Thailand, is purchasing 40 million shares at 16 billion yen, raising its stake in Isuzu from 0.2 percent to 3.7 percent.
Itochu Corp., which has a partnership with both GM and Isuzu, is purchasing 40 million shares at 16 billion yen, raising its stake to 4.2 percent, and Mizuho Corporate Bank, which works as Isuzu's main bank, is acquiring 1 million shares for 4 billion yen, the companies said.
GM Chief Executive Rick Wagoner said the sale was needed to strengthen GM's balance sheet and would not end the alliance with Isuzu.