Let's Make A Deal

General Motors Corp. is taking an active role in finding potential buyers for Delphi Corp. plants the bankrupt supplier wants to sell as part of its massive restructuring.

GM also is stepping up efforts to re-source certain Delphi contracts to other suppliers, says Bo Andersson, GM vice president-global purchasing and supply chain. The initiatives are driven by GM's need to ensure a stable source of parts for its vehicle assembly plants.

Delphi, which is GM's No.1 supplier, faces potential labor disruptions due to deep cost-cutting that will eliminate jobs, trim pay, scale back benefits, shutter plants and downsize the workforce.

Once enacted, Delphi plans to emerge from bankruptcy next year. Delphi has said it wants to keep only eight of 41 U.S. manufacturing sites.

GM also is re-sourcing certain Delphi contracts to other suppliers. In March, GM stopped receiving spark plugs from Delphi's Flint, MI, plant.

Today, the auto maker gets its original-equipment spark plugs from Beru AG (for Latin America), Denso Corp. (for all markets) and NGK Spark Plug Co. Ltd. (for North America). Its aftermarket spark plugs now come from Honeywell International Inc.

“We have engaged our best performing suppliers that we think strategically make sense,” Andersson says.

Additionally, GM has re-sourced air-induction systems from Delphi to other suppliers.

For the new GMT900 fullsize pickups and SUVs, now launching, GM is purchasing air-induction modules from Siemens VDO Automotive and Mann+Hummel USA Inc.

How much additional business GM will re-source from Delphi to other suppliers remains a matter of speculation.