General Motors has confirmed it has paid a symbolic EUR1 (US$1.32) for the automatic transmission plant in Strasbourg.
The automaker signed a deal to take over the gearbox factory with Motors Liquidation Company (MLC), but now has to go through a closing process that could take a further two months to finalise.
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“We have to wait for the closing so the sale can be effective – there are a series of formalities,” a GM Strasbourg spokesman told just-auto.
“We have to have a hearing in the bankruptcy court in New York, which should happen on 7 September. It [the price] is in effect a symbolic EUR1.”
The spokesman added production would continue “at least” until 2014, with new projects developed after that date by the research centre in Strasbourg.
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%.
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By GlobalData“The CGT refuses to support the social agreement but it has said it is in favour of the takeover by GM,” said the spokesman.
There will be no redundancies among the 1,150 employees.
