SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of earliest event reported) December 10, 1999
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GENERAL MOTORS CORPORATION
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(Exact name of registrant as specified in its charter)
STATE OF DELAWARE 1-143 38-0572515
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(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
100 Renaissance Center, Detroit, Michigan 48265-1000
3044 West Grand Boulevard, Detroit, Michigan 48202-3091
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (313)-556-5000
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ITEM 5. OTHER EVENTS
On December 10, 1999, General Motors Corporation (GM)issued the
following press release announcing the broad strategic alliance between GM and
Fuji Heavy Industries Ltd. (Fuji) including a $1.4 billion, 20-percent equity
stake in Fuji.
General Motors, Fuji Heavy Industries Form Broad Alliance Global Automakers
Look to Share Manufacturing, Products,Technology
GM to Take 20 Percent Stake in Fuji, Maker of Subaru Cars and Trucks
TOKYO - General Motors Corp. and Fuji Heavy Industries Ltd. announced today
that they have formed a broad strategic alliance that will allow the two global
auto makers to collaborate in the design, development and manufacture of cars,
trucks and related technology.
As part of the alliance, GM will buy a $1.4 billion, 20-percent equity stake in
Fuji, the maker of Subaru cars and trucks. Tokyo-based Fuji will remain an
independent company with Detroit-based GM as its largest shareholder.
The alliance agreement covers all aspects of the partners' business in all
regions of the world. The companies anticipate that the partnership will focus
initially on the design and manufacture of small and midsize sport utility
vehicles, all-wheel-drive systems, continuously variable transmissions for mini
cars, and integrated vehicle control systems. The companies also plan to work
together on advanced technologies.
"This is a partnership that will make both GM and Fuji stronger companies in an
increasingly competitive, global industry," said G. Richard Wagoner Jr., GM
president and chief operating officer. "The potential of the GM-Fuji alliance is
significant. We come together as two healthy auto makers whose operations and
areas of expertise complement one another."
Takeshi Tanaka, president and chief executive officer of Fuji, said his company
was attracted to GM in part because of the success of GM's relationships with
Isuzu Motors Ltd. and Suzuki Motor Corp. GM has a 49 percent stake in Isuzu and
owns 10 percent of Suzuki.
"The GM alliance model, which allows a high level of management autonomy based
on the principle of a true partnership, appealed to us and gave us the
confidence to take this major step," Tanaka said.
Tanaka said the potential for growth of FHI's business around the world was a
key element that led to the agreement.
"GM needs to strengthen its presence in Japan. Fuji would like to boost its
brand position in North America and Europe," he noted. "We plan to explore
numerous opportunities around the world. Where there is a need, we will move
aggressively together to meet it."
"This partnership simply makes good business sense for both companies," Wagoner
said. "By working together on products, distribution, parts, technology and
purchasing, we'll both realize cost savings and dramatically improve our
prospects for boosting global market share and profits."
Wagoner said GM was impressed with Fuji's pioneering work in specialized
technologies, such as all-wheel-drive systems and continuously variable
transmissions for small vehicles.
"These technologies will help us grow stronger in the small and midsize car
segments, which are undergoing rapid growth around the world," Wagoner said.
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Both companies have agreed to exchange preliminary information on their ongoing
work in advanced future technologies, such as alternative propulsion systems and
so-called "intelligent vehicles," to identify opportunities for joint research
and development.
GM's equity participation indicates the seriousness with which each company is
approaching the new alliance. Fuji is strong financially, so a capital infusion
was not a necessity.
"The equity purchase is at a level that will help facilitate cooperation and the
realization of collaborative efforts. It is also symbolic of the commitment both
sides have made to a strong partnership and to the enhanced competitiveness of
GM and Fuji that will result," Wagoner said.
The GM-Fuji alliance will complement the similar partnerships GM already enjoys
with Isuzu and Suzuki, he added.
"The automotive world of the 21st century will be very different from the one we
know today. There will be more strategic alliances and partnerships. GM is
fortunate to have three strong, thriving companies in Asia - Isuzu, Suzuki and
now Fuji - with which to build for the future."
General Motors, founded in 1908, is the world's largest vehicle manufacturer. GM
designs, manufactures and markets cars, trucks, heavy-duty transmissions, and
locomotives worldwide. GM's vision is to be the world leader in transportation
products and services.
In 1998, GM generated revenues of $161 billion from its businesses globally,
which included sales of 8,165,000 cars and trucks. GM vehicles are sold in
nearly 190 countries and the company has manufacturing operations in more than
50 countries. GM employs about 391,000 people worldwide.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GENERAL MOTORS CORPORATION
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(Registrant)
Date December 14, 1999
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By
s/Peter R. Bible
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(Peter R. Bible,
Chief Accounting Officer)
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