A French transmission plant that had been scheduled for liquidation as part of General Motors’ packaged bankruptcy last year has been spared, the Detroit automaker announced today.
The Strasbourg, France, plant, which builds six-speed automatic transmissions for GM and BMW products, had been placed under Motors Liquidation, the umbrella organization designed to jettison GM’s “unwanted” assets. Over the last year, GM had unsuccessfully attempted to sell the plant, which actually builds more parts for BMW than for itself.
About 65 percent of the plant’s production is for BMW. The 430,000 square foot plant employs about 1,100 workers and includes a technical center. Located near the France-Germany border, it supplies six-speed automatic transmissions primarily for German-made Opel, Vauxhall (pictured) and BMW vehicles. The plant builds about 1,300 transmissions every day.
Now, the “New GM” says it will buy back the factory from Motors Liquidation for the symbolic sum of 1 euro. GM never intended to close the factory; instead, in an effort to streamline its operations, it had hoped to find a buyer for the facility. After entertaining 50 interested parties, it failed to receive a substantial bid. It is unclear if GM will increase its focus on the plant now that it will retain ownership for the long run. GM did confirm that it does not intend to change its relationship with BMW despite the transfer of ownership.
References
1.’GM Bankruptcy Estate…’ view
