GM May Sell Stake in Isuzu to Raise Cash

March 30, 2006 3:30 PM, EST

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eneral Motors Corp. is in talks to sell shares of Isuzu Motors to three Japanese firms, Bloomberg reported Thursday.

GM’s 7.9% stake in Isuzu is worth about $340 million and it said any sale would not halt its projects with Isuzu, Japan’s largest truck maker, Bloomberg said.

It is considering selling its stake to Itochu Corp., Mitsubishi Corp. and Mizuho Financial Group, Bloomberg reported.

GM is strapped for cash after taking $10.6 billion in losses last year. The No. 1 automaker needs to raise cash to meet $3 billion in lease obligations, cut jobs and invest in new models, Bloomberg reported.

GM raised $2.7 billion from selling shares in Fuji Heavy Industries and Suzuki Motor Corp. It said it planned to continue developing models in Asia, where its sales grew 20% last year.