Hummer Forums by Elcova  
Forums - Home
Source Decals

Source Motors
Custom. Accessories.

H2 Accessories
H3 Accessories
Other Vehicles

H2 Source

H2 Member Photos
H2 Owners Map
H2 Classifieds
H2 Photo Gallery
SUT Photo Gallery
H2 Details

H2 Club

Chapters
Application

H3 Source

H3 Member Photos
H3 Classifieds
H3 Photo Gallery
H3 Owners Map
H3 Details
H3T Concept

H1 Source

H1 Member Photos
H1 Classifieds
H1 Photo Gallery
H1 Details

General Info

Hummer Dealers
Contact
Advertise

Sponsored Ads










 


Source Motors - custom. accessories.


Go Back   Hummer Forums by Elcova > General Hummer Talk > In the News

Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 04-12-2006, 10:19 AM
Klaus's Avatar
Klaus Klaus is offline
Hummer Guru
 
Join Date: Nov 2002
Location: CSA
Posts: 2,511
Klaus is an unknown quantity at this point
Default

Latest Overseas Pullback
Comes as Auto Maker Tries
To Bolster Domestic Business

By YOSHIO TAKAHASHI
April 12, 2006; Page A11

General Motors Corp. plans to sell its 7.9% stake in Isuzu Motors Ltd. for about $300 million, cutting a capital tie with another Japanese auto maker as its tries to turn its business around.

The U.S. auto maker said it will sell the Isuzu shares to two Japanese companies with close ties to the truck maker, Mitsubishi Corp. and Itochu Corp., and to Mizuho Financial Group Inc.

GM, focusing on rebuilding its business at home, sold most of its holdings in Suzuki Motor Corp. in March and unloaded its entire stake in Fuji Heavy Industries Ltd. last year. Saddled with debt and losing market share in the U.S. to Toyota Motor Corp. and other Asian rivals, GM has been trying to restructure its unprofitable North American operations.

Separately, GM's purchasing chief said the company is shifting work from top supplier Delphi Corp. to other suppliers in preparation for Delphi's planned exit from certain business lines.

The Isuzu sale will enable the Detroit auto maker "to strengthen our balance sheet and to enhance our ability for contingency," GM Asia Pacific President Troy A. Clarke said. While dissolving a capital alliance that dates back to 1971, GM and Isuzu said they will continue to cooperate in various business areas, including the joint development and production of commercial vehicles.

Mitsubishi and Itochu said they will each buy 40 million shares in Isuzu, or a 3.5% stake, for 16 billion yen ($135 million) from GM. Mizuho Financial Group said it will buy 10.09 million shares, or a 0.9% stake, for about four billion yen. The transactions will take place Monday.

"We'd like to utilize [Itochu's and Mitsubishi's] experience and know-how to beef up our [overseas] sales," Isuzu President Yoshinori Ida said at the news conference. Isuzu already sells its vehicles in overseas markets in cooperation with the two trading houses.

Mr. Clarke said he expects GM purchases from Isuzu to grow even after the capital tie is dissolved, as demand for diesel engines and commercial vehicles will likely strengthen in developing markets. Isuzu sales of automobile parts, components and products to GM come to 183 billion yen a year, accounting for 12% of the truck maker's group sales.

GM's shift away from Delphi eventually could ease its dependence on its former parts unit and presents opportunities for suppliers interested in picking up high-volume business that Delphi plans to drop. The auto maker sent spark-plug and air-induction work to other suppliers and is talking actively to companies to see it they are interested in picking up more Delphi work, said Bo Andersson, GM's vice president of global purchasing.

Delphi, which is under Chapter 11 bankruptcy-court protection, has said it planned to close the vast majority of its North American plants and exit certain business lines, such as brakes and spark plugs, where it said it couldn't compete.

GM, which buys about $85 billion a year in parts and materials, including $61 billion a year in North America, has awarded spark-plug business formerly provided by Delphi to Japan's Denso Corp. and NGK Spark Plug Co., as well as Honeywell International Inc. and Germany's Beru AG. Air-induction contracts were awarded to Siemens AG unit Siemens VDO Automotive Corp.
Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT +1. The time now is 02:29 AM.


Powered by vBulletin Version 3.0.7
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.