General Motors chief executive Rick Wagoner has said that a deal over GM’s contribution to labour costs at parts maker Delphi could be reached “reasonably soon” and end up costing GM between $US6bn to $7.5bn.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
During a trip to China, Wagoner told The Wall Street Journal (WSJ) that “a huge amount of progress has been made” toward a deal, but that “some issues remain”.
GM has already booked $6bn in charges in expectation of a deal, the WSJ noted.
Wagoner reportedly said a deal would help control costs at Delphi, and therefore at GM, which used to own the parts maker and still has long-term supply contracts with it.
Wagoner estimated that under those contracts with Delphi, GM is currently paying $2 billion a year above market prices for components, the report said.
