Delphi enters agreement to sell suspension and brakes business

By Caroline Salls

Pittsburgh, March 31 - Delphi Corp. has entered into an asset purchase agreement with BeijingWest Industries Co., Ltd. for the sale of Delphi's remaining global suspension and brakes business, according to a company news release.

Under the agreement, BeijingWest Industries Co., Ltd. will acquire machinery and equipment, intellectual property and some real property.

Assignment and assumption of customer and supplier contracts will also transfer to BeijingWest, according to the release.

Delphi said the suspension and brakes business is comprised of 3,000 employees, primarily located in Poland, China, Mexico, France and the United States.

The company said it identified the brakes and suspension business as non-core product lines that no longer fit into its future strategic framework as part of its transformation plan.

Having previously concluded asset sales and business transfers with Bosch, Tenneco and TRW in North America, as well as asset sales and business transfers with SEVA in South America, Delphi said this proposed sale represents further substantial progress toward the completion of the transformation plan announced in 2006.

Following an auction and sale hearing, the company said it expects the sale to close during the fourth quarter of 2009.

Delphi said it plans to ask the U.S. Bankruptcy Court for the Southern District of New York to schedule a hearing on the bid procedures for April 23 and the sale hearing for May 21.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005. Its Chapter 11 case number is 05-44481.

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