GM to take over Canada venture after Suzuki pulls out

TOKYO: General Motors of Canada will take full control of joint manufacturing venture CAMI Automotive Inc by buying the 50-per cent stake of Japanese long-time partner Suzuki Motor, both companies said on Friday.

Neither auto maker announced the price or date of the share transaction.

Parent company GM, the world's number two car maker, had asked to take over the Suzuki share in the Ingersoll, Ontario venture which both companies founded in 1986 to make cars under both brand names for the North American market.

The American auto maker, which in July emerged from bankruptcy, has been refurbishing the plant and recalling laid-off workers to meet growing demand for the vehicles being made there now.

The move "builds on the recent positive news at the plant since the highly successful launch of the Chevrolet Equinox and GMC Terrain," said GM Canada president Arturo Elias in a statement.

GM said that because of "strong customer demand for these popular and fuel-efficient compact crossovers" it was expanding shifts and facilities "to increase capacity by an additional 40,000 vehicles annually."

In Japan, a Suzuki spokesman said: "We received a request from GM that it wished to buy our stake in CAMI. We responded to that."

The factory was no longer making cars under the Suzuki brand, he said, adding there were no plans to re-introduce the vehicles and little need to retain the stake.

Suzuki will continue its cooperation with GM on developing fuel cells and other environmental technologies, the company said.