GM and Suzuki have pledged to continue working together

The sale, which will reduce GM's share in Suzuki to 3%, should produce about $2bn (�1.1bn) in much needed funds to aid GM's ongoing turnaround efforts.

GM, which last year sold off its 8.7% stake in fellow Japanese carmaker Subaru, made a loss of $8.6bn in 2005.

Detroit-based GM has been hit by falling sales, and in January it announced plans to cut 30,000 jobs.

'Ongoing partnership'

GM and Suzuki said on Monday that the two companies would continue to work together.

"We've been under the support of GM for a long time, and this time it's our turn to help GM," said Suzuki chief executive Osamu Suzuki.

"I don't think the partnership is in deep trouble. It's just that GM needs help."

Analysts said they expected GM to maintain its final 3% stake in Suzuki.

"They've had a relationship for a long time, and they need each other," said car sector analyst Koichi Sugimoto of Nomura Securities.

"Splitting up would have been negative for both sides."

Suzuki and GM have had a partnership since 1981.