General Motors to Sell Steering Unit to Chinese Group
General Motors will sell its Nexteer Automotive unit to a Chinese government-backed consortium.
GM said Wednesday that it had agreed a deal to sell Nexteer, which makes steering systems, to a joint venture between Chinese auto parts supplier Tempo Group and the investment arm of the Beijing municipal government, Reuters reported.
The American company did not release a price for the sale. Media reports put it at around $450 million.
GM, which will file for a multi-billion dollar IPO in the next few weeks, aims to close the deal in 2010, Reuters said.
Nexteer had global revenue of over $2 billion in 2008. It is based in Saginaw, Mich., and has over 6,000 employees worldwide.