DOW JONES NEWSWIRES 
 

General Motors Co. said it will create two new, wholly owned subsidiaries containing four Delphi Corp. (DPHIQ) components operations and Delphi's global steering business so it can continue to supply its global operations.

Delphi, GM's largest supplier, won court approval Thursday to sell its assets to its lenders and GM, clearing the way for the company to end its four-year stay in bankruptcy.

GM, now majority-owned by the U.S. government, also just completed a speedy trip through bankruptcy court. A liquidation of Delphi would have threatened GM's viability, since the company needs a steady stream of parts from Delphi.

Under the agreement, GM is acquiring Delphi's steering business in Saginaw, Mich., as well as four plants in New York, Michigan and Indiana. The remaining businesses will go to the lenders, while "noncore assets" will be sold over time.

GM Components Holdings LLC will include the four components plants, while GM Global Steering Holdings LLC will include Delphi's steering operations in Saginaw and most of the global steering manufacturing operations and engineering centers in Europe, Mexico, South America and Asia.

The components operations and the global steering business also supply about 60 customers besides GM.

- By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; Kathy.Shwiff@dowjones.com