Delphi Airbag Business May Attract Attention

With airbags becoming more plentiful in many automakers offerings, current suppliers have become very interested in Delphi’s airbag business.
According to a report in the Automotive News, if Delphi is required to sell of its airbag business as a result of Chapter 11 reorganization, it would put the fourth largest supplier of airbags on the market, and whichever company picks it up could find themselves dominant player in the market.
With estimated sales of $442 million U.S. in 2005, Delphi was number four in Europe, North America and Japan-Korea.
However, analysts also said that it was not necessarily a sure thing that the business would be put up for sale as it is a good fit with the company’s electronics and safety systems businesses which are profitable.
Ultimately, though, that decision may be left up to the trustees and, with 98% of Delphi’s North American airbag business going to the struggling General Motors, it may not fetch the price tag that they would like should it be put up for sale.