Report: Suzuki to stop selling GM vehicles in Japan

Monday, June 12, 2006
Report: Suzuki to stop selling GM vehicles in Japan
Associated Press



TOKYO -- Suzuki Motor Corp. will dissolve its sales partnership in Japan with General Motors Corp. and end its joint development operations in the country with the American automaker, a news report said Sunday.

The Japanese small-car maker plans to stop its distribution of the Chevrolet Trailblazer sport utility vehicle and Optra wagon in Japan sometime this year, Japan's largest daily the Yomiuri said.

Suzuki will also stop manufacturing and selling the Chevrolet Cruise, a jointly developed SUV, it said. The vehicle was developed in 2001 and is manufactured in Japan, it said.

The report did not identify any sources or offer a reason for the move. Suzuki officials were not available for comment Sunday.

The GM-Suzuki partnership dates back to 1981. But those ties have loosened recently after GM sold 17 percent of Suzuki in April for about $2 billion, leaving it with a 3 percent stake.

That followed last year's sale of GM's entire 20 percent stake in Fuji Heavy Industries, the Japanese maker of Subaru cars. GM, which has been struggling to boost profits, also sold the 7.9 percent stake it held in Japanese truck maker Isuzu Motors Ltd.

Speculation has been growing on whether Suzuki will pick other auto partners in place of GM.

Suzuki and Japan's Nissan Motor Co. earlier this month announced an expansion of their business cooperation, which includes mutually supplying vehicles and sharing plants. However, the two companies denied that their partnership will step up to involve holding stakes in each other.