General Motors Sells Its Position In New Venture Gear To DaimlerChrysler.(Brief Article)(Statistical Data Included)

DaimlerChrysler Corp. and General Motors Corp. said they plan an ownership restructuring of New Venture Gear (NVG), the powertrain joint venture formed by the two companies in 1990. Under the plan, DaimlerChrysler (DCC), which currently holds a 64 percent interest of the joint venture, would assume complete ownership of NVG, the companies said. NVG would remain a separate company and continue to independently manage its business with GM and other customers, they added.

As part of the plan, GM said it will no longer be part of NVG, but will manage NVG's current facility in Muncie, Ind., which produces transmissions, differentials, gears and other automotive components, as an independent business.

The companies said that, following the restructuring, NVG's principal operations will include its current Syracuse (N.Y.) facility, which produces transfer cases, transaxles and other automotive components for DCC, GM and other customers. NVG will also continue to operate its Roitzsch facility in Germany, which is beginning production of transfer cases for various automotive customers, the two companies said. Management, engineering and development functions at the Troy, Mich.-based headquarters will be restructured, as future plans are finalized, they added.

In a related development, BorgWarner Inc. and General Motors Corp. have opened talks relative to the future of the New Venture Gear manufacturing facility in Muncie, Indiana, its current product line and opportunities for growth in BorgWarner's four-wheel drive business. BorgWarner has signed a letter of intent with GM regarding BorgWarner's use of the NVG facility in Muncie with an eye toward expanding its existing line of torque distribution and management products.

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