GM moves to sell off lorries
General Motors is in talks to sell its lorry businesses in Australia and South Africa to Japanese manufacturer Isuzu, as it attempts to raise cash and focus on car production.
GM is struggling to cut costs and boost sales as it loses ground to leaner rivals such as Toyota and Nissan.
Isuzu will reportedly buy out the 40 per cent joint venture stake GM has in Isuzu-General Motors Australia. The Japanese company will also take a majority stake in a second GM lorry arm in South Africa.
Isuzu, in which GM has an 8 per cent stake, said it wants to increase its role as the main large vehicle-maker for the American firm.
There is also market speculation that Isuzu may also raise its stake in GM’s North American diesel engine production business from 40 to 60 per cent.
A spokesman for Isuzu said the two companies were in talks but no agreement had yet been reached.
Isuzu says it plans to spend around $259m (£147m) on a reorganisation of its overseas businesses over the next three years.
GM, which lost more than $1.4bn in the first half of the year, last week posted a third-quarter $1.6bn loss.
Analysts are beginning to openly speculate about GM’s continued losses and large debt mountain tipping the carmaker into bankruptcy.