The Midwestern Racing Division of GM, which owns the brands Corvette, Camaro, Chevrolet and Lincoln, has been sold to the Ford Motor Company, and will retain ownership of all of the brands, including the Corvette and Lincoln brands, according to an announcement from the division.
The deal is expected to close in late September or early October, GM said in the statement.
The Midwest Racing Division also owns the Ford Mustang, the Dodge Charger, the Chevy Equinox, the Buick Regal, the Lincoln Navigator and the Lincoln Town Car.
The company will continue to operate the brand in the US.
The merger will create the largest automotive division in the company’s history.
It also will include a new, global headquarters, the division said.
The division will continue its operations with an additional 200 employees, GM added.
GM had been working on a plan to sell off the brand for years, and the company had been pursuing a merger with Ford in 2016.
The automaker also had been trying to sell the brand to a new entity, and it eventually decided to go with Ford.
“Our team members will be moved to Ford’s headquarters in Dearborn, Michigan,” the statement read.
While the deal has a high risk to the Midwestern brand, it also represents a chance for the division to make up for lost market share that was lost due to competition from other brands, the statement added.
GM also announced plans to open a new factory in Michigan, and has said that it is looking to expand its production in the U.S. A number of brands, such as the Lincoln, Chevy and Corvette brands, will continue with their production in Europe.
The brand will continue in North America, GM noted, and new Ford models will be announced in 2018.
With the acquisition of the Midwest division, GM is also expected to retain a large chunk of its existing dealerships in Michigan and elsewhere in the Midwest.
The group is expected use its existing inventory to open new outlets in Michigan to compete with rivals.