GM to Buy Stake in Fuji Heavy Industries

General Motors Corp. is set to announce in Tokyo that it’s buying a 20% stake in Fuji Heavy Industries Ltd., parent of auto maker Subaru, for about $1 billion, sources familiar with the deal said. The agreement, barring a last-minute hitch, is the latest of many mergers and alliances in the worldwide automotive industry, and helps GM fulfill its pledge to boost its share in the fast-growing Asia-Pacific market to 10% by 2005, from about 4% now. Officials at GM declined to comment on the impending alliance with the manufacturer of Outback wagons and Forester sport-utility vehicles. Under the terms of the deal, Subaru would exchange its all-wheel-drive technology, which has made it a strong niche player in the U.S. and Japanese markets, for GM’s fuel technologies, including fuel cells, sources said. Japan’s Nissan Motor Co. is expected to sell its 4.06% stake in Fuji to GM. GM would be the largest single shareholder in Subaru, but the 20% stake is below the 33% necessary in Japan for management control.