 General Motors Corp. and its former parts division, Delphi Corp., are negotiating to give some Delphi plants back to GM, a move that could benefit both companies, analysts say.
Delphi, which has been struggling to emerge from bankruptcy, might find it easier to attract the financing it needs to leave bankruptcy if it sheds unprofitable factories and its dependence on the struggling GM. Meanwhile, GM, which is racing to meet a deadline to submit a restructuring plan to the U.S. Treasury by Feb. 17, could be assured that production would not be disrupted from its largest supplier. Last week, Delphi asked a judge for permission to cancel its salaried retiree health and life insurance benefits in an effort to slash $1.1 billion from its balance sheet to make it more attractive to investors. Shedding factories could have a similar impact. | |||
