Delphi Corporation has signed a non-binding agreement with the Renco Group for the sale of its interiors and closures business.
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The sale is subject to bankruptcy court approval and the waiver of any “no sale” clause in any union collective bargaining agreements.
The interior and closures business includes products such as instrument panels, consoles, cockpits, door modules and latch systems. The business supplies a number of automakers worldwide from manufacturing operations in the United States, Mexico, Austria, Germany, China and Korea and generates annual revenue of approximately $US1.3bn, according to Delphi.
“Any sale of the interior and closures business would be done in coordination with Delphi’s customers, unions and other stakeholders to carefully manage the transition of the business and would be subject to the completion of the consultation process with the relevant works councils in Europe,” Delphi said in a statement.
US media reports said Renco Group is a private holding company owned by billionaire Ira Rennert.
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By GlobalDataDelphi, a one-time General Motors subsidiary, has been operating under US Chapter 11 bankruptcy protection since October 2005 and expects to emerge from that in the first half of this year.
Delphi has previously announced plans to close or sell 21 of its 29 US plants and focus on operating only eight that make electronics, safety systems, heating and air conditioning systems and some mechanical parts.
The plants up for sale or closure make steering systems, brakes, dashboards and other parts that Delphi no longer considers part of its core business.
