Indian and South Asian companies are the latest entities to express an interest in purchasing all or part of embattled Delphi Corp.’s
The Sona Group of Haryana, India, has expressed interest in Delphi’s Saginaw-based steering gear business, and at least two smaller South Asian companies have expressed an interest in Delphi assets, according to reports circulating in India’s English-language business press.
While Delphi officials did not comment on the specific Indian expressions of interest, It has been reported that Delphi intends to sell $400 million and $500 million in the noncore assets in 2005, including the previously announced $202.5 million received from the sales of its battery business. Al figures in U.S. dollars.
Robert “Steve” Miller, Delphi’s chairman and chief executive officer, has yet to present a coherent plan for the future of the company’s manufacturing operations. Miller has said Delphi can no longer manufacture components in the United States if the company’s workers don’t adjust to deep cuts in pay.
The steering gear business always has been considered one of Delphi’s stronger business units, but the company’s executives have never described it as critical, like the electronics business, which yields larger profit margins but faces intense competition from new suppliers in China and elsewhere in Asia.
Since Delphi announced its entry into Chapter 11, a host of potential suitors have expressed interest in acquiring all or part of the company. The list includes auto parts makers Valeo, and Robert Bosch GmbH. New York investor WL Ross and Company has also expressed interest.
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