General Motors and Pacific Century Motors (PCM), an entity formed by The Tempo Group and E-Town, an affiliate of the Beijing Municipal Government, 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.

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.

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.

—Stephen J. Girsky, GM vice chairman, Corporate Strategy and Business Development

The transaction is expected to close by the end of the year, pending regulatory approvals.

E-Town is a state-owned enterprise serving as the financing and investing arm of the Beijing Municipal Government with a focus on investing in global technology companies. E-Town has more than US$15 billion in various credit facilities for the purpose of financing acquisitions and providing growth capital.

Tempo is a manufacturer of complex automotive components, serving automotive OEMs worldwide. The company is headquartered in Beijing, with multiple manufacturing facilities throughout China, which produce components and modules for chassis, powertrain and driveline systems. Tempo has a global sales network covering North America, Europe, Asia, and Middle East, as well as an engineering center located in Detroit.