General Motors to Sell 5 Plants to Parts Manufacturing Firm

General Motors Corp. said Monday that it is selling five parts manufacturing plants to American Axle & Manufacturing as part of a strategy to focus on its core components business.

Sale of the axle, propeller shaft and forging businesses in Michigan and New York will be effective Feb. 28. Terms of the agreement, signed Monday, were not disclosed.

Some 7,300 people are employed at the five plants.

“It is anticipated they (AA&M;) will retain all of the employees,” GM spokeswoman Mary Irby said.

“We’re now in a position to concentrate on growing our core businesses: steering systems and components and front-drive axles,” said Donald L. Runkle, GM vice president and general manager of the Saginaw Division.

AA&M; will own axle plants in Detroit and Buffalo, N.Y.; forge plants in Detroit and Tonawanda, N.Y., and a propeller shaft plant in Three Rivers, Mich.

Since December, 1982, GM has been trying to sell divisions it believes can compete more effectively independently. GM spokesman Gerry Holmes called the sale to AA&M; the most significant.