General Motors Co., has announced that will sell a transmission plant in France to a private Belgian company as part of an effort to and losses in Europe.
According to GM, Punch Metals International, the Belgian company will acquire the entire Strasbourg operations including the production plant, the engineering center and the die casting operation for an undisclosed price.
As part of the deal, the new owner will keep all the employees of the operations, while GM will continue to be a customer until 2014. At this moment all the operations at the plant employs about 1,000 people.
Last month, the U.S. based automaker said that it expects to lose between $1.5 billion and $1.8 billion in 2012, depending on the level of restructuring in the fourth quarter. In case that will reach this level, GM will lose almost double compared to 2011, when the automaker has lost $747 million in Europe.
What’s more incredible is that it’s German based automaker Opel has lost more than $16 billion over the last 12 year.
In addition, GM Vice Chairman Stephen Girsky said the company is expecting European auto sales to all between 4 percent and 5 percent in 2013 compared to 2012.