13.12.2002
GM, DCX announce New Venture Gear restructuring

GM and DaimlerChrysler (DCX) have signed definitive agreements that will lead to the completion of the previously announced ownership restructuring of New Venture Gear (NVG), a powertrain joint venture formed by the two companies in 1990.

Both automakers expect the transaction to take effect early in 2003, provided pre-closing conditions are met, such as the granting of necessary government approvals.

Under the agreement, DCX will assume total ownership of NVG, which will remain a separate company and will continue to independently manage its business with GM and other customers. NVG will maintain plants in Syracuse, N.Y. and Roitzsch, Germany. Its headquarters operations will continue in Troy, Mich. and will provide services to Muncie under service agreements for the next few months.

In addition, GM will acquire 100 percent ownership of the former NVG facility at Muncie, Ind. through a wholly-owned subsidiary, Manual Transmissions of Muncie, LLC (MTM). The plant, which manufactures manual transmissions, differentials, gears, and other auto components, will be linked into GM's Powertrain organization.

Both MTM and NVG will continue to produce and supply automotive components for GM, DaimlerChrysler, and other OEM applications. Financial details of the agreement were not announced.