GM Drops Its Stake in New Venture Gear

New Venture Gear, the powertrain joint venture formed in 1990 between DaimlerChrysler Corp. and General Motors Corp., is being dissolved.

DCC, which had a 64% stake in the venture, will assume complete ownership of NVG. The operation will remain a separate company and continue to independently manage its business with GM and other customers. GM relinquishes its stake in NVG but will manage its plant in Muncie, IN, as an independent business. The facility had been part of the venture and makes transmissions, differentials, gears and other automotive components.

NVG's principal operations now include its current Syracuse, NY, facility, which produces transfer cases, transaxles and other automotive components for DCC, GM and other customers. NVG also will continue to operate its Roitzsch facility in Germany, which is beginning production of transfer cases for various automotive customers. Management, engineering and development functions at the Troy, MI-based headquarters will be restructured as future plans are finalized.