General Motors is selling it’s 20% stake in Fuji Heavy Industries at significant loss at about USD$ 735 million, compared to the USD$ 1.3 billion it paid in the year 2000.
Fuji Heavy Industries owns Subaru. GM says the partnership did not result in enough collaboration to justify the cost so it’s taking it’s money to invest somewhere else.
Of the 20% stake on the market now, Toyota confirmed it will buy up 8.7% which is 68 million shares. General Motors will sell the remaining 11.3% either back to Fuji Heavy Industries or put it on the open market.
Joint-car development projects between General Motors brands and Subaru will be discontinued. GM’s Saab had plans for a cross-over SUV based on the Subaru B9 Tribeca but the project is now scapped. However Subaru will continue building the Saab 9-2x which is based on the Subaru Impreza wagon.
Toyota is likely eyeing Subaru’s all-wheel drive technology.
Source: Detroit Free Press