Delphi debtor completes sale of ride control assets, Kettering plant inventory

By Caroline Salls

Pittsburgh, May 30 - Delphi Corp. debtor Delphi Automotive Systems LLC has completed the sale of its ride control assets and inventory at Delphi's Kettering, Ohio, facility to Tenneco Inc., according to a Tenneco news release.

Specifically, Tenneco said it has agreed to pay $10 million for existing ride control components inventory and $9 million for related machinery and equipment. Tenneco will also lease a portion of the Kettering facility from Delphi.

As part of the deal, Tenneco has also acquired excess manufacturing assets, which it intends to use to continue growing its OE ride control business globally.

In addition, Tenneco said it has entered into a long-term supply agreement with General Motors Corp. to continue supplying passenger car shock and strut business to GM from the Kettering facility.

"Tenneco's acquisition of these assets, and a committed book of business from GM, gives us an opportunity to further diversify our ride control business in North America with more passenger car business as well as strengthen our ride control manufacturing capabilities in other key markets ," Neal Yanos, Tenneco senior vice president and general manager, North America Original Equipment Ride Control, said in the release.

"The purchase is also a win for the Kettering community and employees since jobs will be maintained that otherwise would be lost. We're moving ahead with a strong local management team in place with the goal of growing the plant's book of business."

Tenneco said it will employ roughly 400 hourly and salaried employees at the Kettering plant. In connection with the purchase agreement, Tenneco has also entered into a five-year agreement with the International Union of Electrical Workers.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 05-44481.

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