GM eyes Isuzu sale

AS IT announced a deal to sell its 51 per cent stake in its financing arm GMAC for $US14 billion this week, General Motors has also acknowledged that it is discussing the sale of its stake in long-time Japanese truck partner Isuzu.

After selling most of its stake in Suzuki last month, and its full 20 per cent share in Subaru parent Fuji Heavy Industries last year, General Motors is now considering selling its 7.9 per cent stake in "core alliance partner" Isuzu.

Its shareholding is worth approximately $A465 million.

GM said in a statement that it had "many long-term mutually beneficial projects and the level of activity between the two companies continues to increase".

The company said it would not expect the sale of its Isuzu shares to have any effect on this "important strategic alliance".

Isuzu is a major supplier of diesel engines and other components for GM, which accounts for around 18 per cent of the truck-maker’s annual revenue.

Billion-dollar deal
GERMAN auto supplier Continental AG has bought the automotive electronics business of Motorola for $US1 billion ($A1.4b) in cash. Scheduled for completion before June 30, the transaction includes Motorola’s controls, sensor, interior electronics and telematics businesses.