General Motors agrees to forgo Delphi component price reductions amid labor talks

By Caroline Salls

Pittsburgh, Nov. 28 -General Motors Corp. has agreed to temporarily forgo previously agreed-to 2006 price reductions on components supplied by Delphi Corp. to GM while Delphi is in talks with its unions on a new labor contract, according to an 8-K filing with the Securities and Exchange Commission.

According to the filing, GM said it will continue to work constructively in the bankruptcy court proceedings with Delphi, its unions and other participants in Delphi's restructuring process in an effort to achieve outcomes that are in the best interests of GM and its stockholders and that enable Delphi to continue to be an important supplier to GM.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy Oct. 8 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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