TOKYO - Cash-strapped US auto giant General Motors Corp. will sell its three percent stake in Japanese mini-car specialist Suzuki Motor Corp. as part of efforts to raise funds, Suzuki said Monday.

Suzuki said it would spend 22.4 billion yen (S$349.4 million) to buy back on the market the same amount of shares that GM plans to sell on Tuesday.

It said the two partners would continue with ongoing joint projects.

General Motors used to be the biggest shareholder in Suzuki Motor with a stake of more than 17 percent, but it sold most of the shares in 2006.

GM is struggling to avoid bankruptcy as the global economic crisis puts people off buying cars.