Japan's Suzuki has bought 500,000 shares of GM, representing a 0.7 per cent stake in the world's largest car maker, for about $37 million, a Suzuki spokesman said Wednesday.

Last September, GM announced it would increase its stake in Suzuki to 10 per cent, and Suzuki's acquisition of the American company's shares is intended to bolster their partnership, said the spokesman.

The two car makers already have a joint venture in Canada and have been increasing coordination of their global manufacturing operations.

Suzuki has primary responsibility for the design and development of small passenger vehicles, particularly in Asia. US-based GM is responsible for midsize and large passenger vehicles.

Suzuki is Japan's largest manufacturer of mini-vehicles and the world's third biggest motorcycle maker. The announcement comes amid awave of global consolidation within the auto industry.

Last month, France's Renault acquired a 36.8 per cent stake in Japan's ailing Nissan Motor Co. Also Wednesday, a Japanese newspaper reported that Mitsubishi Motor Co and Mazda Motor Co, which is controlled by US car maker Ford, are in negotiations to form a broad technological alliance. Both companies refused to comment, saying the report was based on speculation.

-- The Wall Street Journal