GM to exit Japan alliance with Subaru maker, Toyota steps in

0 Comments | AFP, October, 2005

TOKYO (AFP) — Struggling US car giant General Motors said it will give up on its partnership with Japan's Fuji Heavy, maker of Subaru vehicles, with growing rival Toyota stepping in.

General Motors, hit by sluggish sales at home, will sell its 20.1 percent stake in Fuji Heavy, with Toyota buying 8.7 percent and the rest being sold on the market by October 12.

GM said in a statement that Toyota would spend 315 million dollars in cash for the shares. Based on Wednesday's closing price, GM would earn 84.78 billion yen (742.4 million dollars) on the overall sale.

GM has watched as its sales keep plummeting at home, while Toyota is aiming to dethrone GM as the world's top automaker.

Japanese automakers have been so successful in the North American market,...