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) September 14, 2000
------------------
GENERAL MOTORS CORPORATION
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
STATE OF DELAWARE 1-143 38-0572515
---------------------------- ----------------------- -------------------
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
300 Renaissance Center, Detroit, Michigan 48265-3000
-------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (313) 556-5000
--------------
- 1 -
ITEM 5. OTHER EVENTS
On September 14 2000, General Motors Corporation (GM) and Suzuki Motor
Corporation of Japan (Suzuki) issued a press release to announce a series of
actions aimed at further strengthening their existing strategic alliance
including the increase of GM's equity ownership in Suzuki to 20 percent, an
agreement to produce the jointly developed Chevrolet YGM-1 concept car, and the
exchange of personnel. The release is as follows:
GM/Suzuki Further Strengthen Strategic Alliance
Tokyo, Japan - General Motors and Suzuki Motor Corporation of Japan announced
today a series of actions aimed at further strengthening their existing
strategic alliance.
GM will increase its equity ownership in Suzuki to 20 percent, an investment
that is expected to be earnings accretive to GM within a year. In addition, GM
and Suzuki agreed to produce the jointly developed Chevrolet YGM-1 concept car
beginning in September 2001. The companies also will exchange personnel in key
functional areas, and agreed to include GM representation on the Suzuki Board of
Directors.
GM will invest approximately $600 million in Suzuki, which will increase its
ownership in the company from 10 percent to 20 percent, primarily with the
issuance of new shares. GM's investment will be used to support the development
of an extended model line-up based of the new Chevrolet YGM-1 passenger car, as
well as other new joint vehicle development projects and manufacturing and
distribution initiatives.
In order to facilitate the various collaborative projects, the companies will
exchange additional personnel in key areas such as product planning, design,
engineering, research and development, and purchasing. Also, GM Chairman John F.
Smith, Jr. will join the Suzuki Board of Directors at the next General
Shareholders Meeting in June 2001.
Osamu Suzuki, Chairman and CEO of Suzuki Motor Corporation said, "The time is
right to further enhance our strategic alliance. This announcement comes on the
second anniversary of the first strategic alliance agreement when GM increased
its equity investment in Suzuki to 10 percent. Over the last two years, we have
been able to successfully realize our joint European small car project and our
joint project in Argentina, both of which had start of productions earlier this
year. We have also made great progress with the jointly developed YGM-1. We are
now working on a number of new joint GM/Suzuki initiatives in all four major
regions of the world that will strengthen our overall global relationship."
According to Smith, "This strengthened alliance with Suzuki is a critical part
of our growth strategy in this region. We will expand our cooperation in areas
such as R&D, purchasing, finance and information systems to further leverage
resources. In addition, we see tremendous opportunities for expanding
cooperation in the small-sized end of the car market - especially in Asia but
also in other markets."
Smith added that the closer cooperation between the two companies could generate
significant combined annual benefits.
- 2 -
The YGM-1 concept car, revealed last year at the Tokyo Motor Show, will go into
production at Suzuki's Kosai Plant with a start of production of September 2001.
"We are absolutely thrilled that GM will be able to build this jointly developed
vehicle at Suzuki's mother plant in Japan," said Rudolph A. Schlais, Jr.,
President of GM Asia Pacific. "This is strong evidence that our joint small car
strategy is working. It will be among the first of many jointly developed
vehicles with Suzuki and our other alliance partners for the Asian region and is
consistent with GM Asia Pacific's strategy of sourcing Asian derived vehicles
for the region."
The YGM-1 announcement is the latest of a number of joint GM/Suzuki initiatives
that have been implemented recently. In July, GM and Suzuki announced a joint
distribution initiative in the Philippines involving Suzuki's participation in
the GM Autoworld retail concept. In August, GM and Suzuki announced that
Chevrolet will be distributing a sporty model based on the Suzuki Wagon R +
vehicle in Japan under the Chevrolet MW model name. A similar approach will be
considered throughout the region. In addition, this month GM and Suzuki agreed
that Suzuki will invest in the GM Colmotores operation in Colombia. This move
will support production of a new Suzuki model at GM Colmotores, which will be
distributed through the Chevrolet distribution system.
GM and Suzuki are targeting to close this transaction in early 2001 following
clearance from regulators in the respective countries.
# # #
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
--------------------------
(Registrant)
Date September 14, 2000
------------------
By
/s/Peter R. Bible
-------------------------------
(Peter R. Bible,
Chief Accounting Officer)
- 3 -
