GM in talks to sell French factory to ZF Friedrichshafen, Punch
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FRANKFURT (Bloomberg) -- General Motors Co. is in talks to sell its vehicle-transmission factory in Strasbourg, France, to ZF Friedrichshafen and Punch International.
ZF and Punch are bidding jointly to acquire the plant, said GM spokesman Stefan Weinmann. "We continue to be in discussions, but this is not a done deal," he said, declining to specify a possible price.
Punch spokesman Marc Maes said ZF and Punch are in advanced negotiations to produce 8-speed automatic transmissions for ZF at the factory. Torsten Fiddelke, a ZF Friedrichshafen spokesman, confirmed the company was involved in talks on the plant.
About 1,000 people work at the factory, which produced roughly 280,000 six-speed automatic transmissions last year. The plant, founded in 1967, has primarily supplied non-European GM divisions.
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 operational.
The automaker said last month losses in Europe may reach $1.8 billion this year, and that it's seeking a return to profit in the region within three years.
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