The Chinese consortium that is buying Nexteer Automotive from General Motors Co. has pledged to keep the current management team of the steering-parts operation, the state-controlled Xinhua News Agency reported Tuesday.
The report also said the Beijing Municipal Government would support the deal's funding. It didn't elaborate.
Last week, GM said it would sell its steering-parts operation to Pacific Century Motors, a company formed by Tempo International Group and Beijing E-Town International Investment & Development Co., the financing and investing arm of the Beijing government.
The Xinhua report, the first confirmation from the Chinese side on the deal, said keeping the current Nexteer management team was a key factor in GM's selection process for a buyer.
The report said the deal is likely to be completed in the fourth quarter and is pending regulatory approvals in the U.S.
It cited Zhao Guangyi, chairman of Pacific Century Motors, as saying the deal will help Nexteer expand into the Chinese market.
Officials at Beijing E-town International Investment couldn't immediately be reached for comment.
