Markethaus Musings

Subaru and GM announced today that GM would sell its 20% stake in Subaru. Toyota announced it would buy an 8.7% stake in Subaru.

What does this mean? GM needs cash because it is losing money in automotive operations and selling its interest in Subaru generates cash and, hopefully, gives its auto operations more focus on building market share.

It also means that Toyota grows its empire and relationships in the market.

For car buyers, it means that the Saab 9-2 will continue to be built jointly with Subaru (also known as Fuji Industries) but that future collaboration on Saab platforms is now dead.

I've always been a fan of Subaru products because of their focus on rugged, small off road vehicles. They have always had a strong following in import and 4 season markets because of their 4WD capability.