BeijingWest will be in charge of Delphi’s key units
It has been confirmed that BeijingWest Industries of China will purchase the remaining global suspension of Delphi Corp; this acquisition is regarded as part of its rebuilding plan.
In the e-mail replying to China Daily on April 1st, this US auto parts supplier said its portfolio transformation, asset sale and purchase agreement have already been made.
BeijingWest Industries is owned by a state-owned company Shougang Group, Bao’an Investment and Development Co Ltd and Beijing municipal government, all of which hold 51%, 24% and 25% respectively.
The last thing to do of this sale is waiting for court approval and other details. Delphi expects that the sale can be finished at the end of this year.
However, no further details are exposed by both groups.
US local newspaper Detroit Free Press reported that the amount of this sale will be $100 million in cash, which is badly needed for Delphi to maintain its core business.
“This is a prompt deal at this special time,” said by Rodney O’Neal, Delphi’s CEO and president.
In accordance with the agreement, BeijingWest Industries will take over its machinery and equipment, intellectual property and certain customer and supplier contracts.
Delphi, the former parts subsidiary of GM, said that they will successfully finish this transition of the business, in coordination with its customers, employees, unions and other stakeholders.
Chinese auto analysts express that it’s a wise idea for Chinese investors to acquire international automobile parts assets and brands instead of vehicle producers for the former is of low risk.
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