GM Has Potential Buyer for Four Delphi Plants

08/30/96

Reuters has reported that General Motors Corporation told some Delphi division employees that it had found a potential buyer for four of its Delphi parts plants. Initial reports said the company was talking to Magna, of Markham, Ontario in Canada or Atoma International Inc., a division of Magna, but GM has denied it. Delphi spokeswoman Kari Hulsey said, "It's not Magna, it's not a division of Magna."

On Monday GM told workers at its Delphi Interior and Lighting Systems plant in Flint, Michigan that it had a possible buyer for the facility and three others, said union and company representatives. GM did not tell the 1,200 workers at Flint who the prospective buyer is. Tim Thompson, a district shop committee officer for Local 326 at Flint said, "They did tell us that as we spoke the potential buyer was entering into discussions."

Contract talks between the UAW and GM could delay the announcement of the parties involved in the deal, especially if Magna turns out to be a potential buyer. Magna has had a contentious relationship with the Canadian Auto Workers union.

GM said the prospective buyer wants to make a group purchase that includes the Flint plant, one in Livonia, Michigan, and two in Canada. Altogether the four plants employ 5,100 hourly workers and make a variety of interior parts that includes hinges, door panels, and instrument panels.

The facilities at Flint and Livonia, which make hardware and interior door panels, respectively, are both Delphi plants. GM manages the other two plants, a fabricating facility (Oshawa, Ontario) and a seat plant (Windsor, Ontario), but both make products for Delphi.

Paul Dever -- The Auto Channel