General Motors (GM) has been in talks with Delphi to possibly buy back parts of the company that were spun-off more than a decade ago. According to a report in the Wall Street Journal, the possible buy-backs are part of a strategy to help GM qualify for additional government loans.
The discussions, which have been going on since December, include up to five Delphi plants that produce parts exclusively for GM, including steering systems, radios and air conditioners.
Delphi, under bankruptcy protection for the past 40 months, has been an enormous cash drain on GM, which long has subsidized its operations under obligations stemming from the creation of the auto-parts maker, the WSJ article said.
The Delphi plans are likely to be part of the viability proposal GM will present to the Treasury by February 17, according to the Journal.