Suzuki is going places, or at least that's
what investment in the company's stock seem to indicate. Optimism about the Japanese automaker's prospects,
particularly in India and Japan, a 10-percent increase in minicar sales as well as an increase of 13 percent in
production to record levels last month has sent the stock price up as much as five percent over the past three days. We
know more than one American automaker who wishes it had that problem -- in fact, that may have something to do with
Suzuki's recent surge... Suzuki's stock has gone up roughly 9.6 percent since Suzuki bought back 17 percent of its
stock from General Motors earlier this month.[Source: Bloomberg]
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Reader Comments (Page 1 of 1)
Carpenter @ Mar 29th 2006 2:25PM
No longer saddled with a huge 900 pound blood-sucking leech (GM) would make any company's stock go up.
When does GM get so desperate for money that it sells off (GM)Daewoo to Suzuki, which owns part of it, or sells their stake in it to Shanghai Auto of China, which also owns a small stake in it?
I can tell you this; once (not if) GM sells off Daewoo, you know that time is short for the existance of that company.
Ironic, isn't it, that everyone thought Daewoo was a "loser" and in fact it has been the smartest thing GM ever did (to buy into it for pennies on the dollar). Of course, it makes a huge profit for GM.
That's why they'll sell it off. They're selling off all of their family jewels, silverware and everything valuable (read: able to make a profit) in order to raise money in an attempt to survive. Sad.
Paul @ Mar 29th 2006 2:25PM
fiat and suzuki, two successful investments by the brain trust at gm. saab will be the next one.
where is the shareholder revolt
shiznannigan @ Mar 29th 2006 5:42PM
So what will happen to the Verona, Reno, and Forenza? (All are rebadged Daewoos)
klaatu @ Mar 29th 2006 8:36PM
"So what will happen to the Verona, Reno, and Forenza? (All are rebadged Daewoos)
Posted at 5:42PM on Mar 29th 2006 by shiznannigan"
If Suzuki were to buy up GMDaewoo, they'd own more of the company which they're buying these cars from now, and if SAIC bought the GM shares, Suzuki would still own the same percent of GMDaewoo that they do now.
Just like the situation where GM is going to continue to have Suzuki build the Chevrolet Equinox (and Pontiac Torrent) in their Ingersoll, Ontario facility even though GM has sold almost all of Suzuki's once-held stock.
Likewise if disaster for GM continues and they have to sell their portion of GMDaewoo, I'm guessing that Daewoo would be more than happy to continue supplying Chevrolet-badged cars for virtually the rest of the world, as they are now. Besides, the Daewoo auto brand is dead except in South Korea, I believe. Oh yes, I think it still is in place in Romania too!
Steve Kilburn @ Mar 30th 2006 7:05PM
The share will perform even better if the company achieves the size and efficiency of Toyota. This can only happen if Subaru, Suzuki, Mitsubishi and Isuzu, these four niche brands merge together.
The merged company will have manufacturing and sales of nearly 5 million vehicles and they can pool their resources, manpower, manufacturing, vehicle design and development, platforms etc to more effectively compete in the global market-place.
United they will stand, divided they will fall.
chris @ Apr 4th 2006 1:46PM
Suzuki only sells the Daewoo cars in north America. I would imagine that they will be replaced with Suzuki designed products when each comes to the end of its life cycle. I have read that Suzuki is very displeased with the quality of the Daewoo products.