Suzuki has warned it could lose hundreds of millions of dollars in loans to General Motors.
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AFP reported that Suzuki said it has a total of 71.6 billion yen (745 million dollars) of credit, investment and debt guarantees to GM and affiliated companies.
Of the sum, 29.4 billion yen are loans and may become irrecoverable or see delayed repayment, the company said. It said it would allocate necessary loan loss reserves.
Suzuki chairman and president Osamu Suzuki told reporters: “The most obvious reason [for the GM failure] is that they only made big cars and didn’t make small cars.”
“Since the reason is clear, their rehabilitation will likely come early,” he said.
