General Motors confirmed today (16 August) it would purchase the GM Strasbourg transmission development and manufacturing business from Motors Liquidation Company (MLC).
Although no price was disclosed, the automaker last week told just-auto it would pay a symbolic EUR1 (US$1.28) for the plant in eastern France, which employs 1,150 people.
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GM has secured agreement with three of its four unions at the Strasbourg site to introduce new working practices, but the Confederation Generale du Travail labour organisation has consistently held out against the move, which could see costs fall by 10%.
The Strasbourg facility produces six-speed automatic transmissions, with customers including GM operations around the world as well as third party car manufacturers including BMW.
In a statement the automaker said: “GM’s acquisition brings the manufacturing facility into GM’s global manufacturing network, and adds development capability to GM’s global engineering network.
“The proven expertise of GM Strasbourg is an important asset for GM in a core area of the business.”
The deal should close in the next few months, the automaker added.
