General Motors (NYSE: GM) and Punch Metals International, a company of the industrial investor Guido Dumarey, reached an agreement that secures the long-term future of the GM Powertrain operations in Strasbourg, France.
Punch Metals will acquire the entire Strasbourg operations from GM, including the production plant, the engineering center and the die casting operation. All current employees of the operations will be maintained by the new owner.
In addition, the transaction includes a long-term supply agreement with leading automotive supplier ZF. ZF will purchase transmissions from the Strasbourg facility.
GM will continue to be a customer of the Strasbourg operations during the 2013/2014 period in order to enable the facility to maintain a robust level of activities and to provide for a smooth transition to the new ZF-based product line without impact on employment.
Punch Metals plans to make substantial investments into the facility in order to further upgrade its capabilities with the objective to attract additional profitable business from other customers.
This announcement follows the strategic review of the Strasbourg facility that GM announced in May this year. Following a thorough review process, the three companies are pleased to have reached an agreement that secures a long-term viable future for the operations and their employees. This demonstrates GM’s commitment to its social responsibility vis-à-vis its employees and communities.
The agreement is subject to the usual legal and administrative process. This process is expected to be completed early 2013.
