Delphi, GM fail to agree on continuing higher parts prices, cuts effective April 1

New York, May 1 - Delphi Corp. said it has been unable to reach agreement with General Motors Corp. on a further postponement in reductions to prices on components supplied by Delphi.

As a result, the previously agreed contractual price cuts will be in place, effective April 1, according to an 8-K filing with the Securities and Exchange Commission.

GM had agreed in November 2005 to temporarily forego the price reductions through the first quarter.

Delphi said it is continuing discussions with its unions and GM over a consensual agreement and added that it continues to expect that financial support from GM will be part of the agreement.

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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