GM sells Subaru stake to Toyota
Toyota Motor will buy an 8.7 percent position in Fuji Heavy Industries, parent company of Subaru, from General Motors. GM, which currently owns 20 percent of Fuji, will sell its remaining 11.4 percent stake into a Fuji open-market share buy-back program, completely liquidating its position in Fuji by the end of the week.
The Toyota part of the deal is worth $309 million to GM. The value of the Fuji share buy-back will be depend on the open market value of the shares.
The deal allowed GM to restate its second quarter financials to show a $700 million to $800 million reduction in the carrying costs of its Fuji Heavy position.
All Saab-Subaru joint developments will be dropped, except for ongoing supply for Saab’s 9-2x.
Meanwhile, Toyota will benefit from access to Fuji Heavy’s underutilized manufacturing facilities, especially in the U.S., as well as key technologies such as advanced lithium-ion batteries and all-wheel-drive powertrains.
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