GM agrees to sell French transmission plant
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(Bloomberg) -- General Motors Co., trying to end losses in Europe, said it agreed to sell a French transmission plant to Punch Metals International.
Punch Metals will retain employees at the factory, according to a GM statement posted Friday on its Web site. ZF Friedrichshafen also agreed to purchase transmissions from the plant in Strasbourg, France. A price wasn't disclosed.
GM will be a customer of the factory in 2013 and 2014 "to maintain a robust level" of output "to provide for a smooth transition" to a ZF-based product line, the automaker said.
The plant employs about 1,000 people.
GM started a strategic review of the plant in May, hiring Barclays to solicit bids from potential buyers, while also evaluating other options to keep the facility open.
GM said it expects to complete the plant sale early next year.
GM said in October losses in Europe may reach $1.8 billion this year, and that it's seeking to break even in the region within three years. The automaker has lost $17.3 billion in the Europe since 1999.
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