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Delphi Selling Brakes and Suspension Unit to Chinese Company

03/31/2009
Auto parts manufacturer Delphi Corporation has entered into a deal to sell the remainder of its brakes and suspension business to BeijingWest Industries Company Ltd. of China. The company, which did not disclose the financial terms of the agreement, says that it will sell machinery and equipment, intellectual property, and certain real property, as well as certain customer and supplier contracts. Delphi, which has been operating under Chapter 11 bankruptcy protection since October 2005, is General Motors' (GM) largest supplier and has been steadily selling what it identifies as non-core business units as part of its turnaround plan. Crain's Detroit Business reports that BeijingWest is a joint venture between the Beijing municipal government and two private Chinese firms, and that BeijingWest is expected to retain the unit's 3,000 existing jobs in the United States, Poland, China, Mexico, and France. The deal is still subject to approval by the bankruptcy court, but Delphi says it hopes to complete the deal in the fourth quarter of this year.

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