GM Cries Retreat!
GM is backing out of its interest in Japan’s ISUZU.
Money short GM is selling its shares of the Japanese truck maker, Isuzu.
The buyers are two Japanese trading companies and a bank.
The price tag – $300 million.
The reason – GM needs more money to throw down the drain…I mean, they want the money to fund their turnaround in North America.
I hope they don’t turn all the way around, eh?
I reckon the Japanese are happy to have back this part of a business that was theirs.
I had a Japanese Isuzu for many years and I loved that little truck. Perhaps GM should have sold off the GM portion and kept the stake in Isuzu.
At any rate, GM must still fight losses, labor problems and the unceasing competition from ….Asian automakers. Their next competitor is likely to be Isuzu.
What do you think?
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13/04/2006
GM has been losing their pull in the auto market for a long time. The imports just have better build quality. GM selling off the isuzu shares might very well create more compitition for them down the line. They have a lot of work to do to raise many peoples opinions of them and compete.
13/04/2006
I would say that if GM had any competition from another auto maker it would be Honda. I dont mean to say Isuzu isn’t any competition, but Honda’s are very popular among young and mature people. They also retain their value better than any other vehicle. But who knows..
13/04/2006
James,
I think you are right on. GM has a lot to learn from the Japanese about how to do business and maintain high quality.
13/04/2006
Cynthia…my wife drives a Honda…and I drive a Toyota. I don’t think anybody can do it better than Toyota. And no one does everyday cars better than Japan.
What kind of car do you drive?