Delphi Corp. has agreed to sell a non-core business — not its Delphi Thermal Systems division in Lockport — to two Chinese companies and the Chinese government.
The agreement involves Delphi’s brakes and suspension businesses.
In the $100 million cash purchase, which is expected to close by Nov. 1, the Delphi businesses will be owned by a new Chinese company called Beijing West Industries Co. Ltd., based in Beijing. That company in turn will be owned by two existing Chinese companies and the Chinese government, which will have a 25 percent stake.
The transaction is viewed as giving Troy, Mich.-based Delphi, which is struggling to emerge from Chapter 11 protection, much needed capital and allows the auto parts manufacturer to exit businesses that it is not interested in retaining.
The agreement must be approved by bankruptcy court.
Delphi has identified its Lockport business — air conditioning, heating and cooling systems — as a core business for the company after it emerges from bankruptcy from where it has operated since October 2005.
