Nexteer Announces Sale
China-based Pacific Century Motors recently announced plans to purchase GM-owned Nexteer Automotive, based in Saginaw, Michigan. This announcement comes after important labor concessions were made, and signal important, new opportunities for Nexteer to expand into emerging markets, particularly in the Asia-Pacific region. There was a concern that if a buyer could not be found, GM would wind the business down, impacting jobs in Saginaw and at other Nexteer facilities. As a result of this action, an important supplier of critical steering components will remain based in the Great Lakes region.
The following text is from an article in The Detroit News, dated July 8, 2010, and the article can also be seen by clicking here.
The following text is from an article in The Detroit News, dated July 8, 2010, and the article can also be seen by clicking here.
GM to sell Nexteer to Chinese venture
Robert Snell / The Detroit News
General Motors Co. has reached a deal to sell its Saginaw-based steering business Nexteer to a new venture created by two Chinese companies.
The sale to Pacific Century Motors lets GM focus on its core mission of building and designing vehicles and obtain steering components from an independent supplier. It also provides continued capital investment for Nexteer.
"Ultimately, it's a move we believe will make (Nexteer) a more vibrant and healthier business," said GM Vice Chairman Stephen Girsky.
Terms were not released but the deal is expected to close by year's end and must receive regulatory approvals, GM said.
The deal covers global steering and halfshaft operations, 22 plants, six engineering sites and 14 customer support centers in North and South America, Europe and Asia.
Nexteer will continue to be led by President Robert Remenar and his executive team. Its technology center and headquarters will remain in Saginaw.
Pacific Century Motors is an entity formed by Beijing-based auto components manufacturer The Tempo Group and an affiliate of the Beijing municipal government.
Pacific Century will honor a five-year agreement with the United Auto Workers -- a pact that will add jobs in Saginaw.
GM said last year it planned to sell Nexteer after acquiring it from Delphi along with four plants. GM agreed to buy back the business as part of $3 billion in financing to help Delphi emerge from bankruptcy.
At the time, Nexteer had 2,900 workers in mid-Michigan.
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Robert Snell / The Detroit News
General Motors Co. has reached a deal to sell its Saginaw-based steering business Nexteer to a new venture created by two Chinese companies.
The sale to Pacific Century Motors lets GM focus on its core mission of building and designing vehicles and obtain steering components from an independent supplier. It also provides continued capital investment for Nexteer.
"Ultimately, it's a move we believe will make (Nexteer) a more vibrant and healthier business," said GM Vice Chairman Stephen Girsky.
Terms were not released but the deal is expected to close by year's end and must receive regulatory approvals, GM said.
The deal covers global steering and halfshaft operations, 22 plants, six engineering sites and 14 customer support centers in North and South America, Europe and Asia.
Nexteer will continue to be led by President Robert Remenar and his executive team. Its technology center and headquarters will remain in Saginaw.
Pacific Century Motors is an entity formed by Beijing-based auto components manufacturer The Tempo Group and an affiliate of the Beijing municipal government.
Pacific Century will honor a five-year agreement with the United Auto Workers -- a pact that will add jobs in Saginaw.
GM said last year it planned to sell Nexteer after acquiring it from Delphi along with four plants. GM agreed to buy back the business as part of $3 billion in financing to help Delphi emerge from bankruptcy.
At the time, Nexteer had 2,900 workers in mid-Michigan.
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