General Motors and Pacific Century Motors (PCM), an entity formed by The Tempo Group and an affiliate of the Beijing Municipal Government, on July 7 announced they have reached an agreement for GM to sell GM Global Steering Holdings LLC, commonly known as Nexteer, to PCM. Terms of the sale were not disclosed.
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.
“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. 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 for corporate strategy and business development. “Ultimately, it’s a move we believe will make it a more vibrant and healthier business.”
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 and continues to expand in the dynamic Chinese automotive market.
"The new ownership is a tremendously exciting opportunity for Nexteer," said Robert J. Remenar, president of Nexteer. "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."
The transaction is expected to close by the end of the year, pending regulatory approvals.
About Nexteer Automotive:
Nexteer Automotive is a global provider of advanced steering and related technology. The company 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. Headquartered in Saginaw, Mich., Nexteer Automotive employs approximately 6,200 people.
