China Investigates GM's Delphi Bid

The Chinese commerce ministry announced it will look into General Motor's bid to take over parts supplier Delphi, in an attempt to stale monopoly accusation made by local carmaker and parts suppliers. According to the allegations, Delphi could discriminate other customers in terms of price and product quality in case GM takes over.

The Chinese ministry's approval is needed for the deal to go through. GM has already secured support from both the US and the EU and is now seeking Chinese green light "as soon as possible," a Beijing Times report, quoted by says. In China, Delphi supplies just about all major manufacturers, including most know names Chery, Geely and BAIC.

US anti-trust officials approved the takeover in the beginning of the month. According to the agreement between GM and Delphi, the assets being bought by GM will become part of two new, wholly-owned GM subsidiaries. Additionally, GM will assume some $1 billion in Delphi obligations and waive $2 billion in claims.

The first of the two subsidiaries will include four of Delphi’s U.S.-based component manufacturing facilities, two in New York (Thermal Systems in Lockport and Powertrain Systems in Rochester), one in Michigan (Powertrain Systems Grand Rapids) and one in Indiana (Electronics and Safety in Kokomo).

The second will be made up of Delphi’s Steering operations in Saginaw, Michigan, and most of the global steering manufacturing operations and engineering centers in Europe, Mexico, South America and Asia.

GM will allow Delphi to create a new entity, DPH Holding, which will be comprised of "non-core" assets of the former Delphi.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram
About the author: Daniel Patrascu
Daniel Patrascu profile photo

Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories