DOW JONES NEWSWIRES
General Motors Co. said it will create two new, wholly owned
subsidiaries containing four Delphi Corp. (DPHIQ) components
operations and Delphi's global steering business so it can continue
to supply its global operations.
Delphi, GM's largest supplier, won court approval Thursday to
sell its assets to its lenders and GM, clearing the way for the
company to end its four-year stay in bankruptcy.
GM, now majority-owned by the U.S. government, also just
completed a speedy trip through bankruptcy court. A liquidation of
Delphi would have threatened GM's viability, since the company
needs a steady stream of parts from Delphi.
Under the agreement, GM is acquiring Delphi's steering business
in Saginaw, Mich., as well as four plants in New York, Michigan and
Indiana. The remaining businesses will go to the lenders, while
"noncore assets" will be sold over time.
GM Components Holdings LLC will include the four components
plants, while GM Global Steering Holdings LLC will include Delphi's
steering operations in Saginaw and most of the global steering
manufacturing operations and engineering centers in Europe, Mexico,
South America and Asia.
The components operations and the global steering business also
supply about 60 customers besides GM.
- By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com