Well the (very un-surprising) announcement came out.
GM sold the 7.9% stake it had in Isuzu for US$300m
http://www.usatoday.com/money/autos/...uzu-sale_x.htm

I know why they did it (a little cash strapped prehaps???), but I have to ask, why sell 2 of your most profitable - and potentially useful investments, Fuji Heavy Industries and Isuzu, and keep SAAB on the books?

At least they got rid of Fiat... but man, why would you sell one of the worlds great diesel makers (remember THIS is the company that finally put a real diesel in a Chevy ), when all indicators tell us that diesel is only going to play a bigger role in the world automotive scene.

Sorry - just my rant for the day...

 

Isuzu traded dmax ltd to gm to get gm out of its pocket. What was left was money that could be spent wisely somewhere else.

 

What was left was money that could be spent wisely somewhere else.

Thats kind of my point - there is no better place for money in my opinion than in diesel engine development at the moment...
They had a company which excels at making diesels in the capacity range it will be looking for in the not so distant future (bear in mind Isuzu is the largest diesel engine manufacturer in the world).
So WHY sell it?

 

Oh goody!! Now the General gets to put powdered metal connecting rods in the Duramax as a cost-cutting measure to increase profit margin.

Cody

 

Is that why the 7.3PSD has powdered metal connecting rods, to cut cost?

 

They didnt really sell it. They traded the majority of it away. They no longer had controlling interest. They own their own diesel company now with dmaxltd. Dmaxltd was created as part Isuzu and part GM. GM traded for some smaller diesels too. Stuff that might wind up here after ulsd. I dont think Isuzu was going to give them any more diesels after the trade.

 

If I remember correctly, GMC handed over overseas big truck duties to Isuzu. So, they were smart enough to have Isuzu figure in somewhere.

But, conversely, Isuzu has at least a couple of I4 diesels that should be put in the non-HD trucks by now. Or at least tease us with them! The Isuzu compact truck has it overseas...

Isuzu had some good news...what a kick. I would still like to test drive one of those big boxy Isuzu NQR Crew Cabs with the 5.2L I4 TDI....if I can find one nearby, since the stealership I went by last summer really stocks only the regular cabs and half of those have the 6.0L gasser v8 (bleah!). What a bummer.

 

Didn't they also sold one of their most profitable mortgage companies...sure makes you wonder.

 

Seems like if you were going to trim the fat you would get rid of the losers not the winners. All I can figure is that it was some sort of liability. Or that they have something much more profitable in mind and needed some quick cash.

 

Just one word- Ca$h. GM didn't own Izuzu- they've been selling off their stake for quite awhile, so this just completes the transaction.

 

Changes are a good thing, sitting still cause you cant move is baaaad.