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General Motors is selling its shares in Suzuki, the Japanese cars and motorbikes firm which was at one stage mooted as a potential takeover target for the US giant.

GM has 3 per cent of the company's shares, and these are worth around $230 million based on today's share price. In 2006, it sold a further 17.4 per cent stake.

Suzuki and GM have collaborated on several research projects in fuel cells and hybrids and have a joint manufacturing operation called CAMI which makes small SUVs such as the Chevrolet Equinox, the Pontiac Torrent and the Suzuki XL7.

Both Suzuki and GM are stressing that these activities and joint ventures will continue after the share sale.

Rick Wagoner, GM's chairman and chief executive officer, said: "We highly value our strategic relationship with Suzuki. This action will have no impact on our existing bilateral business relationships."

GM took a stake of 5.3 per cent in Suzuki in 1981. This was diluted to 3.5 per cent in subsequent years, but in 1998 GM increased its holding to 10 per cent, and then further to just over 20 per cent in 2001.

Under the terms of the share sale, Suzuki and GM said they would discuss the repurchase of shares by GM later if that was what GM wanted.