DETROIT -- At least two European suppliers could buy portions of Delphi Corp. -- if the price is right and the business fits.
Delphi CEO Steve Miller recently told Automotive News he plans to shrink the company by 20 percent during its Chapter 11 bankruptcy reorganization. That's about $5 billion a year in business that could be on the sales block.
Additional assets could be sold, depending on bankruptcy court proceedings and the size of potential bids. Spinoffs resulting from the restructuring of Visteon Corp. also interest the Europeans.
"The outlook for increasing opportunities to get business with General Motors and Ford has increased with the failure of these two companies (Delphi and Visteon)," said Remy Dumoulin, investor relations director of Valeo SA of Paris.
Valeo and Continental AG have gone on record expressing interest. Others, such as Robert Bosch GmbH, the world's largest supplier, are watching carefully but not commenting.
Continental and Valeo won't say what might interest them, but analysts say there are plenty of potential opportunities.
For example, Delphi's Harrison Thermal Systems operation in Lockport, N.Y., might be a useful addition to Valeo's portfolio of climate control and engine cooling businesses, says Jim Gillette, director of supplier analysis in the Grand Rapids, Mich., office of CSM Worldwide Inc. Continental could increase market share by buying Delphi's antilock brake and suspension parts businesses in Dayton, Ohio, Gillette said.
Neither company would comment on specific businesses they might consider. Both stressed that no talks are in progress.