DETROIT -- General Motors is wasting no time shifting parts production from Delphi Corp. to other suppliers if Delphi intends to exit the segment.
The automaker has moved from Delphi to Siemens VDO Corp. air-induction systems on GM's key GMT900 light-truck and SUV program, GM global purchasing chief Bo Andersson said Tuesday.
That's the second major program moved from Delphi in the past month. GM also has shifted spark plug production from Delphi's Flint, Mich., operations to Denso Corp., Beru AG, NGK and Honeywell International Inc., Andersson said at a press conference after he presided over a supplier forum here. The supplier program was organized by the Original Equipment Suppliers Association.
Andersson, GM vice president of global purchasing, said GM is reaching out to its best suppliers to see if they are interested in picking up component production that Delphi has identified as noncore and intends to leave.
GM is working with Delphi to move the business, Andersson said.
The contracts with GM, rather than Delphi's plants and equipment, offer the greatest value to suppliers looking to obtain the work that Delphi is shedding, he said.
Siemens produces thermoplastic air-induction systems in southwest Ontario, said Siemens spokesman David Ladd. Delphi makes air-induction systems, used in engines, in Flint, according to a Delphi filing in U.S. Bankruptcy Court in New York.
Delphi put its U.S. operations in Chapter 11 bankruptcy protection Oct. 8. The company said on March 31 that it intends to close or sell all but eight of its 29 manufacturing plants in the United States.
The giant supplier also has asked six labor unions operating at its plants, including the UAW, for wage and benefit concessions of about 60 percent.
Andersson told the Tuesday assembly of more than 500 supplier representatives that he is confident that GM's restructuring plan is on the right track. He thanked suppliers and asked them to stick by the automaker while it finds its way through tough times.
He said GM has a contingency plan if there's a strike at Delphi. While GM CEO Rick Wagoner has said that GM has stockpiled some parts, Andersson said the scale of Delphi's supply to GM makes it "not very workable" for the automaker to operate long without Delphi production.
Delphi is GM's largest supplier. It produces about $14 billion of the $86 billion in parts that GM buys annually from around the world.
Delphi ranks No. 2 on the Automotive News list of the top 100 global suppliers with estimated worldwide original-equipment parts sales of $24.10 billion in 2004.
You may e-mail Dave Barkholz at [email protected]