GM to Double Its Stake in Suzuki Motors

General Motors Corp will spend $653 million to double its stake in Suzuki Motor Corp. in an effort to increase its share of Asia-Pacific’s fast-growing auto market. Suzuki shares rose to 13.2% in Tokyo. As part of the transaction, John F. Smith Jr., GM’s chairman, will become the first non-Japanese member of Suzuki’s board. Also, in September 2001, the two companies will start building a jointly developed small car called YGM-1 at Suzuki’s Kosai plant in Shizuoka, southwest of Tokyo. GM’s expanded stake in Suzuki is a cost-efficient way to boost its presence in Asia-Pacific countries and to gain expertise in building small cars profitably, said Rudy Schlais, president of GM’s Asia-Pacific operations. American Suzuki Motor Corp., the Brea-based U.S. import and distribution arm, said the deal with GM is not expected to have any immediate or significant effect on Suzuki’s North American operations.