General Motors selling its steering business
By Andrew C., 27 Aug, 2010. 0 Comments
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General Motors Co. has been rumored to be negotiating the sale of its steering business for at least the past four months to a Chinese buyer but now, the carmaker acknowledges that it is indeed selling this unit.
Yubei (Xinxiang) Power Steering System Co. Ltd. is most favored to purchase the former Delphi Steering, now known as Nexteer Automotive, a Nexteer source confirms.
Last December, Automotive News reported that Yubei was pursuing the acquisition.
In order for Delphi Corp. to be able to leave Chapter 11 bankruptcy, GM bought Nexteer and four other UAW-represented U.S. plants back from Delphi in October. In 1999, Delphi, the former GM parts unit, spun off from its parent company to create an independent public company.
Delphi filed for bankruptcy in 2005 and emerged in October 2009. [via autonews - sub. required]
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