GM to Divest of Fuji Heavy Industries (Subaru) Stake - Toyota to Buy Piece

TOKYO October 5, 2005; Reuters reported that Fuji Heavy Industries Ltd. said on Wednesday it will dissolve its alliance with General Motors Corp., and that Toyota Motor Corp. will buy an 8.7 percent stake in the Subaru maker from the struggling U.S. car giant.

GM will sell its remaining 11.4 percent stake in Fuji Heavy in the market and the Japanese auto maker will end a joint-development project with GM's Saab brand, Fuji Heavy said.

Fuji Heavy also said it and Toyota would study business tie-up opportunities in research and development as well as production.