3, 30. 2006
General Motors Corp. proposed Isuzu Motors Ltd. to sell its 7.9% stake in Isuzu, the Japanese automaker announced on Mar. 30. GM posted an after-tax loss of $10.6 billion (1.25 trillion yen) in its consolidated statement for fiscal 2005, caused by poor sales performance in its North American market.
Shares that GM is planning to sell are valued at $320 million (38 billion yen). GM is to mainly allocate the profit on sale to its corporate restructuring cost.
Isuzu requested Japanese firms, including its main banker Mizuho Corporate Bank Ltd., as well as Mitsubishi Corp. and Itochu Corp., to buy the stakes to be sold by GM. Isuzu has a alliances with Mitsubishi and Itochu in its overseas sales.
