GM 'wanted controlling Isuzu stake'
GM has scaled back its original plan to purchase over a third of Isuzu.
General Motors (GM) planned to take a controlling stake in Isuzu Motors but was rebuffed by the Japanese firm.
Reuters, citing a person familiar with the business negotiations, reports GM wanted to purchase over one-third of Isuzu for approximately $3 billion (£1.84 billion), but has scaled back its plans after Isuzu stressed it wants to remain independent.
GM, which was once an equity partner with Isuzu and owned as much as 49 per cent of the company, is looking to expand after being saved from bankruptcy by the US government in 2009.
It owns brands including Chevrolet, Cadillac and Opel and is said to be looking to increase its market presence in south-east Asia, where Isuzu vehicles are popular. Its N series of light-duty trucks holds a 49 per cent market share in Vietnam and sales are also strong in Malaysia and the Philippines.
Should a deal go ahead it will be the second completed by GM this year, as in March it agreed a $423 million deal for a seven per cent stake in Peugeot.
Posted by Edel Quinn
Source: Reuters, May 1st