General Motors is to sell its Nexteer Automotive global steering and halfshaft operations to Chinese operation Pacific Century Motors (PCM).
Although financial details of the sale have not been revealed, GM Global Steering Holdings, known as Nexteer, has inked the deal with PCM, a joint venture between the Beijing Municipal Government and The Tempo Group.
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Nexteer operations include 22 manufacturing and six engineering facilities as well as 14 customer support centres in North and South America, Europe and Asia.
It also designs, engineers, manufactures and sells electric power steering, hydraulic power steering, steering columns and driveline halfshafts for more than 60 automobile manufacturers and tier one suppliers.
“The sale of Nexteer to PCM supports our objective to focus on our core auto business and is the final step in our efforts to position Nexteer as an independent supplier,” said GM VP corporate strategy and business development Stephen Girsky.
“The sale better enables Nexteer to take advantage of anticipated growth in the global auto industry with a variety of automakers.”
GM added the sale of Nexteer to PCM positions the company for greater growth potential through expansion of its customer base and growth in key emerging markets, especially in the Asia-Pacific region, where PCM has an established presence.
The transaction is expected to close by the end of the year, pending regulatory approvals.
