• Apr 2nd 2009 at 7:58AM
  • 39
Delphi has reached an agreement to sell off its brake and suspension business. A consortium consisting of Tempo Group, Capital Iron & Steel Co. and the Beijing government will own Beijing West Industries Co. Ltd, a new company that will buy the remaining chassis and brake operations of Delphi. Almost all of Delphi's brake business has been with GM, but many of those contracts have been re-sourced over the last several years while the company has been under chapter 11 bankruptcy. Recently, the most prominent part of the business has been the magnetic ride system which has been adopted by customers including General Motors and Ferrari. The new Chinese-owned company gets the tooling, intellectual property and some of the factories along with remaining supply contracts. Whether this change helps the business survive and thrive remains to be seen.

Press Releases
Delphi Signs Agreement to Sell Global Suspension and Brakes Business
Company To File Motion Requesting Court Hearings To Approve Bidding Procedures and Authorize Sale of Assets
Release Date: March 31, 2009

Troy, Mich. -- Delphi Corporation (PINKSHEEETS: DPHIQ) announced today that it has made further progress with its portfolio transformation and has entered into an asset sale and purchase agreement with BeijingWest Industries Co., Ltd. for the sale of Delphi's remaining global suspension and brakes business. 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.

As required under the U.S. Bankruptcy Code, Delphi expects to file a motion later today 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 Co., Ltd. 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 Co., Ltd. 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.

More information on this agreement and the court filing will be available at www.delphidocket.com.

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    • 1 Second Ago
      • 6 Years Ago
      Wow, some of these comments show a gross lack of intelligence.
      You wouldnt believe how many parts on ANY car are made in china then shipped to the US to be assembled.
      • 6 Years Ago
      Just watch failing brake and suspension on GM's cars.
        • 6 Years Ago
        @ Sektor

        Those are unauthorized and unbranded cheap imitation auto replacement parts being shipped out of China to Japan and Korea. And mostly for GM Daewoo(GM owned) and Ssangyong(formerly Chinese owned).

        Japanese and Korean automakers themselves refuse to use parts from Chinese due to quality concerns. They would be glad to if the quality can be assured, but Chinese parts do not meet their quality standards and cannot be used.
        • 6 Years Ago
        Yes, a whole bunch of CHEAP parts can account for $4.5 billion in exports...
        Yeah, right.

        I am really curious about the motivation of anti-China "people," so that I don't use another word. What compels people like you to troll everywhere "China" is mentioned?
        • 6 Years Ago
        Of course I forgot the one of the most important adjectives: coward. You people never reveal your true nationality, and pretend to be something else spreading China-hate. Why don't you man up and say what you are? Lack of confidence in your little, insignificant country?
        • 6 Years Ago
        "Your kind seems to achieve some orgasmic pleasure in mocking China, as if that was the sole purpose of your miserable existence. You people hate China and believe everybody else does; and while you do a good job pretending to Westerners to be all classy and polite, are just treacherous, evil and mostly sad little people. Laugh while you can."

        Sektor what's up with you? Do you work for the CPC (Communist Party of China) or something?
        • 6 Years Ago
        hypermiler said:
        "China is a very much hated word outside of China. When people hear the word China, they imagine cheap junks, Tibetan oppression, melamine-tainted milk, organ sales in black market, etc. Nothing positive pops into your mind when you hear the word China."

        There's no reason to hate the Chinese cars becouse of as you said Tibetan oppression, melamine-tainted milk, organ sales in black market, etc , that's not automakers fault. Better look at progress of Chinese automakers, look for example at Brilliance BS4, it is already structuraly as safe as the European/Japanese cars in the end of 90's , beginning of 2000's, and compare this to one year earlier test of Brilliance BS6, you will see HUGE progress, and these Brilliances look more original than some cars from other countries e.g. Hyundai Genesis sedan. BYD is selling plug-in hybrid with lithium phosphate battery - BYD F3DM. Not as long as 10 years ago Hyundai was also at the bottom in quality, reliability and now they're making cars with acceptable quality, reliability. I think in the next 5-8 years Chinese will be able to do similar progress as Hyundai. Tata (Indian company) is already planning a luxury car - Tata Prima , for sale in India in 2013 and worldwide in 2015.
        • 6 Years Ago
        Chinese parts are already in your cars.
        • 6 Years Ago
        Tsk tsk... Search for Toyota + Chinese parts... And this:

        Top 10 destinations of China '08 auto exports

        Country Value

        U.S. $9.406 bln
        Japan $4.533 bln
        Russia $2.133 bln
        Korea $1.916 bln
        Germany $1.490 bln

        I guess the $4.5 bln in auto parts exported to Japan and the $1.92 billion exported to Korea all go to a huge black hole.

        Wake Up! Everything is made in China now, no matter how you want to crusade against it.
        • 6 Years Ago
        Hey Hypermiler, chew on these.



        Most of that is from 2002 and I'm sure that the plans from 2002 which were just for China market cars have expanded to the Japanese market and American market cars. There is no way Toyota would just buy the cheap Chinese steel for it's Chinese cars. That steel is used for cars sold by Toyota in every market.

        You need to swallow your Japanese pride.
        • 6 Years Ago
        @ Sektor

        > Chinese parts are already in your cars.

        I only drive Toyotas so not in my car.
      • 6 Years Ago
      There's a huge difference between products made in china that follow strict american standards and guidelines and just any ordinary product made the chinese way. All manufacturers batteries like HP are made in China. They are made with very strict guidelines and standards of safety whereas the chinese branded batteries are just made with no standard. It has nothing to do with an engine made in China. They know there is no room to screw around when it comes to making the products for the US. Now that they own the company, they run it the way they want to.
      • 6 Years Ago
      China or not its not good to see a US company being sold to a foreign power. We borrow money from China and then we send it right back to them by buying their goods. We need to protect American manufacturing and thus the American economy.
        • 6 Years Ago
        The thing is, if they didn't buy those U.S. Treasuries, this country could be broke by now.
      • 6 Years Ago
      This is how China's global industrial hegemony takes a turn for the serious.

      It probably will be a turn for the better as there are plenty of Chinese auto manufacturers in need of high-quality brake and suspension parts. They could each easily spend a decade in R&D and not meet the standard a long-lived supplier like Delphi can already deliver.

      If anything, it just ensures that a true quality, Chinese-built car is that much closer to coming over the horizon.
        • 6 Years Ago
        Not sure how much better this would be for Delphi. It's not a contract, more like they're selling off a part of their business. Seems like just one more thing that won't get made by a US company.
        • 6 Years Ago
        More like Delphi part's quality will degrade to Chinese level.
      • 6 Years Ago
      Chinese made brake system??? Have they gone mad? I hope the components they make are still up to Delphi standards or there are going to be big problems.
      • 6 Years Ago
      I guess we're gonna start seeing plastic brakes and suspensions that can't withstand the pressure of the weight of the car at standstill.
        • 6 Years Ago
        @ Hypermiler,

        Ever used a Lenovo ThinkPad or workstation? Designed and manufactured in China.

        Does China make complete garbage somtimes? You bet. Have some of their products also taken huge strides in terms of quality in recent years? You bet. Let's not act naive and stupid here; our fathers said the same thing about "Jap Crap" cars in the 70's, and look what's happening now.

        The Chinese will have to learn the hard way about World quality standards just like the Japanese and Korean. It's not that they aren't capable of making a decent product, just their own standards have been so low in the years past, that they fail to realize what others expect.
        • 6 Years Ago
        Are you guys aware that Delphi has been building parts in China for a long time. GM imports engines(along with many components) built in China and installs them in vehicles for the USA.

        • 6 Years Ago

        The engine the Chevy Equinox is a completely Chinese engine. It was designed and built in China and seems to do well. Many brake pads and other systems are built in China and many are what some call "critcal" components. Get over it.
        • 6 Years Ago
        > Once Chinese take over Delphi, Delphi's quality standard is thrown out and the Chinese standard(whatever that means) takes its place in the name of restructuring and cost control.

        This is why you never see a Chinese brand quality product.

        High level of bigotry detected. As usual.
        And this one is so downright pointless (besides China-bashing) that's not even worth answering.
        • 6 Years Ago
        @ Sektor

        Foreign brand goods manufactured in China are fine because the foreign manufacturer implements their own quality control standard in Chinese operation.

        Once Chinese take over Delphi, Delphi's quality standard is thrown out and the Chinese standard(whatever that means) takes its place in the name of restructuring and cost control.

        This is why you never see a Chinese brand quality product.
        • 6 Years Ago
        Here come to dumb jokes about Chinese quality again. You probably aren't aware of it, but the U.S. is the biggest importer of the Chinese auto industry. Without a single Chinese car being sold here.

        In other words, you ALREADY have Chinese parts in your cars, just like everything else you are using, including the computer you are reading this from, and the keyboard you are using to type this dumb comment.
      • 6 Years Ago
      Another example of what happens when folks shy away from the American made products (cars in this example) if favor of imports (even if they are manufactured here in the States) and the local business cannot make money, resulting in the intelectual property being either discarded or sold abroad. How long will it take to have US have everything imported and producing only financial products and hamburgers? Well, it may depend on how much longer it will be fashionable to denounce domestic made stuff in favor of imports. Digging your own grave and feeling great doing it. Go ahead, tell us more why the domestic product is so bad and why you don't even think about giving it a chance. Yeah, we don't need manufacturing here, let's have it all made abroad. Great job, fellows.
        • 6 Years Ago
        @ Sektor

        There is a good reason why Japanese and Koreans do not buy from Chinese suppliers.
        • 6 Years Ago
        We all should be glad that the Chinese (or somebody) is taking over Delphi.

        If not, when GM and Chrysler collapse they'll take the suppliers with them. The same suppliers Ford, Toyota and everyone else buys from. Then guess what happens next ;)
      • 6 Years Ago
      They have the money and they need the tech. I don't see anything ominous here except an increasingly competitive Chinese auto business, and you know that is inevitable. The auto business had better be in the hands of the engineers. R & D rules. If you snooze, you lose! Automation can trump cheap labor, because of transportation costs. There is no longer any room for unions. If you want to benefit from the auto business, you better be buying stock, not paying dues.
      • 6 Years Ago
      In Carmaker’s Collapse, a Microcosm of South Korea’s Woes

      “Chinese company BOE got the technology they wanted. All we got was layoffs,” said Hwang Pil-sang, a Hydis worker."

      “We trusted their promise to help us into the vast Chinese market,” Mr. Yang said. “In the end, they kept none of their promises, and they got what they wanted: our technology.”

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