General Motors Dumps SuzukiThu, 20 Nov 2008 00:00:00 -0800
The rumors had been flying. Speculation swirled but many didnít think it would actually happen. It was recently confirmed that the breakup is in fact official. The flowery courtship began back in 1981 when GM set Suzuki apart as the object of its affection. Showering its little geisha then with cash and stock options, Suzuki couldnít resist accepting the 5.3 percent stake.
In 1998, GM finally stepped up to the plate and showed its commitment to Suzuki raising its interest to 10 percent, then to 20 percent in 2001. Things may have looked rosy on the outside but the bouquet of their love soon wilted. In 2006 GM sold 17 percent in Suzuki and still had interest in so many others. GM finally gave up on the relationship citing financial woes as the source of irreconcilable differences selling off its remaining 3.02 percent for $230 million.
Even though GM was playing the field all along, Suzuki claims GM will still have a place in their heart and stay amicable friends. They even have a couple of projects on the horizon despite this rocky predicament. Some of us will just never learn!
By Joe Magro
See also: Another Cruiser?, Suzuki Unveils New Bandit 650 Range, EICMA 2008: First Impressions.