Friendly Neighborhood Fire Sale

GM unloads more stuff. Bloomberg (03.06.06):

"General Motors Corp., reeling from $8.55 billion in losses last year, plans to raise nearly $2 billion by selling a 17 percent stake in Suzuki Motor Corp., the largest maker of minicars. The reduction of the 25-year investment in Suzuki gives Detroit-based GM a pretax gain of between $550 million and $750 million. GM will keep 3 percent of Suzuki, with a one-year option to buy back the 17 percent stake from the Japanese carmaker." GM to Sell 17% Stake in Suzuki, Raising $2 Billion

At least it made money on this one. Last October, GM sold its interest in Fuji Heavy Industries (the folks who make Subarus as well as advanced batteries for gasoline-electric hybrids), to Toyota for about half of what it originally paid back in 2000. Also in 2000, GM bought a hunk of Fiat. That deal worked out so well that in February, 2005, it ended up paying $2 billion to get out from under it. Fiat? Not exactly the smartest move GM ever made, to say the least. And it wonders why it's in trouble. Understatement of the month: Suzuki's Chairman Osamu Suzuki: "'I wasn't aware that GM was in this much trouble. GM probably had a problem with cash flow.'" Probably.