As Sale Nears, Nexteer Workers Look To Future 7-07-2010 - WNEM TV 5

As Sale Nears, Nexteer Workers Look To Future 7-07-2010

General Motors has reached a deal to sell its Nexteer steering business to a venture backed by Chinese companies.
GM and Pacific Century Motors, an entity formed by The Tempo Group and an affiliate of the Beijing Municipal Government, announced Wednesday their intentions to go through with the sale of GM Global Steering Holdings, LLC, commonly known as Nexteer, to PCM.
Terms of GM's sale to PCM were not disclosed.
The Chinese company was preferred by the UAW, who had final say in which of the two potential buyers were chosen.
Watch: Nexteer Ownership: China Vs US
An e-mail from PCM states that they plan on keeping the current management team in place, and keeping the Nexteer headquarters in Buena Vista Township.
PCM also said in the e-mail that they plan on honoring the new UAW five-contract and keeping 2,200 union jobs in Mid-Michigan.
“We’ve been up for sale for quite a few years now, and we feel a company this is best suited for us to sustain these jobs in Saginaw – and grow,” said UAW Local 699 member Matt Beaver. “The best thing about this is we can get a diverse customer base. That’s a great thing.”
The sale of the Nexteer business covers global steering and halfshaft operations including 22 manufacturing facilities, six engineering facilities and 14 customer support centers located in North and South America, Europe and Asia.
Nexteer President and Chief Executive Officer Bob Remenar also said the company, as a whole, is very happy with the new ownership.
"The new ownership is a tremendously exciting opportunity for Nexteer," said Remenar. "Nexteer has grown to become a global leader in steering and driveline products, and our team will be working with the new owners to build on this great foundation."
GM announced in January that it planned to sell Nexteer, which it acquired last year as part of the bankruptcy of auto parts supplier Delphi Corp. Delphi was GM's parts-making unit until it was spun off as an independent entity in 1999.
“The sale better enables Nexteer to take advantage of anticipated growth in the global auto industry with a variety of automakers,” said Stephen J. Girsky, GM vice chairman of Corporate Strategy and Business Development. “Ultimately, it’s a move we believe will make it a more vibrant and healthier business.”
It's unknown how the sale of the company will affect workers at the Buena Vista Township plant in the short term.
GM said the sale of Nexteer to PCM positions the company for greater growth potential as an independent auto supplier through expansion of its customer base and growth in key emerging markets, especially in the Asia-Pacific region, where PCM has an established presence and continues to expand in the dynamic Chinese automotive market.
The transaction is expected to close by the end of the year, pending regulatory approvals.
Tempo is a manufacturer of complex automotive components, serving automotive OEMs worldwide. The company is headquartered in Beijing, with multiple manufacturing facilities throughout China, which produce components and modules for chassis, powertrain and driveline systems.
Tempo has a global sales network covering North America, Europe, Asia, and Middle East, as well as an engineering center located in Detroit.
The sale is expected to close in the fourth quarter.
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