TROY, Mich. — Following General Motors’ filing of its turnaround plan to the U.S. government on Tuesday, Delphi Corp. issued a formal written statement on the matter. The statement comes amid recent speculation that GM may buy back several Delphi plants that it owned, prior to spinning-off Delphi more than a decade ago. According to a report in the Wall Street Journal, the possible buy-backs are part of a strategy to help GM qualify for additional government loans.
Delphi’s statement on the matter is below:
"Delphi has been engaged in lengthy discussions with GM regarding certain matters related to our emergence from Chapter 11. Delphi remains focused on emerging from Chapter 11 as soon as practicable, maximizing return for our stakeholders and preserving the accumulated pension benefits of our employees.
"We are currently engaged in discussions with GM regarding, among other issues, the possible sale of certain Delphi U.S. manufacturing facilities to GM. Should these transactions materialize, we will notify all affected employees and engage in discussions with our customers to ensure the orderly and uninterrupted supply of product to their operations. Additionally, we will work with impacted suppliers on related matters.
"As has been our practice, we do not comment on the specifics of ongoing discussions with our stakeholders. When definitive agreements have been negotiated, Delphi will provide further information.”
The possible sale is said to include five Delphi plants that produce parts exclusively for GM, including steering systems, radios and air conditioners.