ID :
20268
Sat, 09/20/2008 - 08:55
Auther :
Shortlink :
https://oananews.org//node/20268
The shortlink copeid
Isuzu considering buying GM's mid-class truck production business
TOKYO, Sept. 19 Kyodo - Isuzu Motors Ltd. is in talks with General Motors Corp. over the possible purchase of the struggling U.S. auto giant's medium-class truck manufacturing operation, sources familiar with the matter said Friday.
Through the acquisition, the Japanese truck maker hopes to strengthen its
operations abroad while GM hopes to secure the necessary funds and streamline
its business amid slowdown in the U.S. auto industry.
While price negotiations are ongoing after GM approached Isuzu with the
possible sale of its truck operations, uncertainties remain on whether the two
can ink a deal, the sources said.
Observers say the deal may also trigger realignment in the auto industry with
Japanese automakers taking a lead with their strength in fuel-efficient small
cars while U.S. auto giants reel under an economic slowdown and soaring
gasoline prices.
The talks with Isuzu also came after GM incurred a huge loss of around $15.5
billion for the April-June quarter, spurring speculation the company may file
for bankruptcy under Chapter 11.
Cash-strapped GM along with other U.S. automakers have asked the U.S.
government to approve a $25 billion package of low-interest loans as they
grapple with the fallout from a recent financial crisis and slumping
consumption.
GM, Isuzu's former major stakeholder, has maintained close ties in truck
production with the Japanese company even after dissolving their 35-year
capital tie-up in 2006 as part of GM's restructuring efforts.
They have a joint Ohio-based venture called DMAX Ltd., which assembles diesel
engines for use in GM's pickup trucks. GM also produces medium-class trucks for
Isuzu at its plant in Flint, Michigan.
Annual sales of GM's truck division are believed to reach around several
hundred billion yen. It focuses on the production and sales of medium-class
trucks like the TopKick models in North America.
Meanwhile, Isuzu logged a group net profit of 76 billion yen on sales of 1.92
trillion yen during fiscal 2007 through this March.
Isuzu's share price was up 32 yen, or nearly 11 percent from the previous day,
to 336 yen on Friday.
==Kyodo
2008-09-19 21:27:04
Through the acquisition, the Japanese truck maker hopes to strengthen its
operations abroad while GM hopes to secure the necessary funds and streamline
its business amid slowdown in the U.S. auto industry.
While price negotiations are ongoing after GM approached Isuzu with the
possible sale of its truck operations, uncertainties remain on whether the two
can ink a deal, the sources said.
Observers say the deal may also trigger realignment in the auto industry with
Japanese automakers taking a lead with their strength in fuel-efficient small
cars while U.S. auto giants reel under an economic slowdown and soaring
gasoline prices.
The talks with Isuzu also came after GM incurred a huge loss of around $15.5
billion for the April-June quarter, spurring speculation the company may file
for bankruptcy under Chapter 11.
Cash-strapped GM along with other U.S. automakers have asked the U.S.
government to approve a $25 billion package of low-interest loans as they
grapple with the fallout from a recent financial crisis and slumping
consumption.
GM, Isuzu's former major stakeholder, has maintained close ties in truck
production with the Japanese company even after dissolving their 35-year
capital tie-up in 2006 as part of GM's restructuring efforts.
They have a joint Ohio-based venture called DMAX Ltd., which assembles diesel
engines for use in GM's pickup trucks. GM also produces medium-class trucks for
Isuzu at its plant in Flint, Michigan.
Annual sales of GM's truck division are believed to reach around several
hundred billion yen. It focuses on the production and sales of medium-class
trucks like the TopKick models in North America.
Meanwhile, Isuzu logged a group net profit of 76 billion yen on sales of 1.92
trillion yen during fiscal 2007 through this March.
Isuzu's share price was up 32 yen, or nearly 11 percent from the previous day,
to 336 yen on Friday.
==Kyodo
2008-09-19 21:27:04
