Delphi to sell suspension, brakes units to China

Shanghai, April 1 (Gasgoo.com) Delphi Corp. will sell its remaining suspension and brakes businesses to China's newly founded Beijing West Industries Co. Ltd. as part of the U.S. auto-parts supplier's restructuring efforts. Beijing West will acquire equipment, property and intellectual property in the deal, but did not disclose the price, sina.com said today.

Two Chinese companies and Beijing municipality have recently formed Beijing West Industries Co. Ltd. to own and run the Delphi businesses. Chinese auto-parts supplier Tempo Group, which has its U.S. R&D operations in Canton, will acquire a 24% stake in the Delphi businesses. Capital Iron & Steel Co. (Shougang) will purchase a 51% stake, and the Beijing government will own the remaining 25%.

The Chinese will pay $100 million in cash for the Delphi businesses. The deal gives Delphi, which is struggling to emerge from bankruptcy protection, much-needed capital and allows them to exit operations they are no longer interested in keeping.

Delphi is the former parts unit of General Motors Corp. and has been operating under Chapter 11 bankruptcy protection since 2005. Delphi says it will request a hearing on April 23 to approve a bidding process for the deal, which it hopes to complete by Nov. 1.

Delphi's brakes and suspension businesses have more than 750 patents and employ about 3,000 people in North America, China and Europe.