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GM, Isuzu Finalize Agreements

October 29, 2002

General Motors Corp. finalized details on its agreements with Isuzu Motors Ltd. relating to Isuzu's previously announced three-year business plan. In a press release, Isuzu also said it had reached agreement on a broad financial restructuring with its banks. GM, Isuzu, and the banks said they expect to finalize all transactions by the end of the year. General Motors engineered a financial restructuring for affiliate Isuzu Motors in Aug., under which GM says it will make a fresh investment of 60 billion yen, or $504.7 million, in Isuzu, and the Japanese truck maker's biggest lenders will swap 100 billion yen in loans to Isuzu for new shares. As part of the deal, GM will pay 50 billion yen to acquire Isuzu’s U.S. and Polish diesel-engine operations, as well as the rights to the other Isuzu diesel engines and technologies GM uses. Isuzu also reached preliminary agreements with its banks on a broad financial restructuring in which Isuzu will rationalize under-performing operations, reduce overall employment levels, and restructure its sport utility vehicle business in North America. The implementation of Isuzu's restructuring plan is dependent upon receiving approval from the company's stockholders and finalization of documents.
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