Nexteer Automotive is the new identity of Delphi Corp.'s Global Steering Division as General Motors Co. took over the business after Delphi emerged from four years of Chapter 11 bankruptcy protection.
Delphi Steering President Robert Remenar will continue to head the renamed Nexteer as it becomes a wholly owned GM subsidiary.
GM bought Delphi's global steering business and five Delphi plants in the United States whose hourly workforce is represented by the UAW.
In return, GM assumes more than $1 billion in Delphi obligations. It has also waived $2 billion in claims. There are plans for GM to invest $1.75 billion and provide Delphi with loans.
The rest of Delphi was bought by the supplier's bankruptcy lenders, who waived about $3.5 billion in debt. Delphi emerges from bankruptcy as largely an electronics and air-conditioning maker whose manufacturing footprint is mostly outside the US, says Autonews.
Delphi's outlook is gloomy with expected post-bankruptcy sales of less than $10 billion vs. $22.59 billion in 2005 when Delphi entered bankruptcy. Nexteer has about 6,200 employees worldwide and supports more than 60 customers.
It is set to operate 15 manufacturing plants globally and six technical centers. In 2008, Delphi Steering posted sales of more than $2 billion. Included in Nexteer's customers are GM, Fiat, Ford, Toyota , Chrysler, and PSA Peugeot Citroen, as well as automakers in India , China and South America.