GM to sell parts division to China
By DPA, IANSWednesday, July 7, 2010
NEW YORK - US carmaker General Motors said Wednesday it has agreed to sell a steering parts division to a Chinese group.
The division known as Nexteer will be sold to Pacific Century Motors.
The carmaker declined to state a price for the deal, but Bloomberg financial news said the Chinese were to pay $450 million, according to sources familiar with the deal.
The sale is to be completed by the end of the year.
It is the second time that GM has unloaded the division, which it purchased back from spin-off parts maker Delphi when it went into bankruptcy. Delphi had decided to concentrate on electronics, motors and other parts.
Nexteer has a better chance as an independent parts supplier, GM vice chairman Stephen Girsky said.
Many carmakers fear they could reveal trade secrets if their parts suppliers are tied to a competitor. Though GM is Nexteer’s chief customer, it also serves Fiat, Ford, Toyota, Chrysler, Peugeot and Citroen.
