GM Buys 8.6 Days By Selling Suzuki Stake

Posted by: David Kiley on November 17, 2008

GM is selling its 3% stake in Japanese automaker Suzuki, which will raise about $230 million. Gm has had an investment in Suzuki since 1981. At one point, it held about 20% of the company.
GM and Suzuki have partnered on technology and a few vehicles over the years. Who could forget the Chevy/Geo Metro or the Geo Tracker, which were both Suzuki designed and built?

Suzuki says it will continue its relationship with GM, and understands the automaker’s need to raise cash.

If GM is burning about $2 billion in cash a month, then the Suzuki sale just bought GM 8.6 days of life.

GM says it is burning cash at a rate that will leave it empty by mid 2009. But, in truth, it needs at least $8-$10 billion to operate. If it falls below that level, it will have difficulty meeting payroll, producing vehicles or paying suppliers.

Congress is meeting this week to decide whether or not to float the Big Three as much as $50 billion in bridge loans to help it get through the Recession.

Reader Comments

Web Smith

November 17, 2008 3:40 PM

What Congress, the Senate, and the President are arguing about is whether or not 10 million more Americans will lose their jobs and whether or not this country will maintain any manufacturing capability at all. If we lose 10 million jobs the loss of commerce will cost us 10 million more jobs and affect foreign companies and the ability of people to eat in 3rd world countries.

The unemployment costs to the taxpayers, should they fail to provide our automakers loans, will exceed $200 billion per year. Aside from all of the other issues that these armchair automakers are trying to cloud the issue with, it definitely is a no-brainer so, even these people should not be having this much trouble making a decision.

http://ewebsmith.com/gov/autobailout.html

andy

November 17, 2008 3:53 PM

two spelling mistakes "it held..." not "I held" and "much" not "kuch"

Paul (Vw)

November 17, 2008 4:37 PM

>>> Congress is meeting this week to decide whether or not to float the Big Three as kuch as $50 billion in bridge loans to help it get through the Recession.

"bridge loans"?

Floating them "bridge loans" almost sounds like a bridge to nowhere if there is no plan to restructure them to be competitive. It's only prolonging the agony and wasting taxpayers money. Maybe it is better to file chapter 11, clean house, and start anew.

Richard Collins

November 17, 2008 5:09 PM

No Bailout for the Big Three unless the agree to the following:
1. NO BONUSES FOR TWO YEARS
2. NO RAISES FOR TWO YEARS
3. NO DIVIDENDS FOR TWO YEARS
4. 50% PAY CUT FOR TOP MANAGEMENT
5. NO MORE SUV'S UNLESS THEY GET 30+ MPG

Matt

November 17, 2008 5:23 PM

It would be nice if you proofread the article before you published it.

Carl Phipps

November 17, 2008 7:53 PM

I'm not sure the government should bail out the auto manufactures. Certainly something should be done but to just hand over loads of money because of bad business decisions is not right and it's a bad business decision.

Paul (Vw)

November 19, 2008 7:54 AM

>>> Congress is meeting this week to decide whether or not to float the Big Three as kuch as $50 billion in bridge loans to help it get through the Recession

"bridge loans"? Sounds more like a bridge to nowhere absent restructuring on the part of the Detroit 3 and labor unions.

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