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GM might reclaim Delphi plants
Posted: 02.09.2009 at 10:54 AM
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DETROIT (AP) -- A person familiar with the negotiations says General Motors is in talks with Delphi about taking back some factories that make key parts for GM vehicles. The person asked not to be identified because the talks are private and says GM is worried that the plants could shut down if Delphi runs short of cash, crippling GM's production.
Troy, Mich.-based Delphi has been operating under Chapter 11 bankruptcy protection for more than three years.
GM has had the option to take back factories in its 1999 agreement to spin off Delphi as an independent parts supplier.
Delphi is GM's biggest supplier, providing more than 1,000 parts for GM pickup trucks.
GM is assembling a plan to justify up to $13.4 billion in government loans.
(Copyright ©2009 by The Associated Press. All Rights Reserved.)