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Electronics Production | April 01, 2009

Delphi to sell global Suspension & Brakes Business

Delphi has made further progress with its portfolio transformation and has entered into an asset sale and purchase agreement with BeijingWest Industries for the sale of Delphi's remaining global suspension and brakes business.
As required under the U.S. Bankruptcy Code, Delphi expects to file a motion with the U.S. Bankruptcy Court for the Southern District of New York requesting a hearing on April 23, 2009, to approve bidding procedures, and a hearing on May 21, 2009, authorizing and approving the sale of assets.

The final sale of the business is subject to court approval and other closing conditions. Delphi anticipates the sale closing during the fourth quarter of 2009.

Under the sale and purchase agreement, BeijingWest Industries will acquire machinery and equipment, intellectual property and certain real property. Assignment and assumption of certain customer and supplier contracts will also transfer to BeijingWest Industries. Delphi will carefully manage the transition of the business, and the sale will be completed in coordination with Delphi's customers, employees, unions and other stakeholders.

The business today is comprised of approximately 3,000 employees, primarily located in Poland, China, Mexico, France and the United States.

As part of the company's transformation plan announced on March 31, 2006, Delphi identified its brakes and suspension business as non-core product lines that no longer fit into the Company's future strategic framework and could become more profitable and competitive as stand-alone businesses or as part of another organization with the working capital to invest in and support these businesses.

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, this proposed sale represents further substantial progress towards the completion of Delphi's transformation plan announced three years ago.

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