DETROIT -- General Motors could shift up to $4.5 billion in contracts from Delphi Corp. to competitors.
As Delphi leaves several major lines of business as part of its U.S. bankruptcy restructuring, suppliers are snatching chunks of work that GM is pleased to source elsewhere.
The feeling is mutual: Delphi already has asked the bankruptcy court to void 5,472 of its GM contracts.
Meanwhile, GM is finding new suppliers to produce some of Delphi's components. For example, Siemens VDO will produce part of the intake manifold for GM's newly introduced GMT900 SUVs. GM also has found new suppliers to produce sparkplugs previously made at Delphi's Flint East plant, said GM purchasing chief Bo Andersson at a press conference last week.
That trickle of new contracts promises to become a flood. Andersson says he is asking GM's "best suppliers" to take on additional work that Delphi no longer wants.
About $4.5 billion of GM business now in the hands of Delphi is up for grabs, according to an Automotive News estimate. That is equivalent to the North American original-equipment sales of ArvinMeritor Inc., North America's ninth-largest parts supplier.
The $4.5 billion reflects the GM portion of Delphi's U.S. sales that the supplier no longer considers to be core.
Those numbers include eight plants making low-tech or commodity products in Delphi's Automotive Holdings Group, as well as two plants at Saginaw Steering in Saginaw, Mich.; Milwaukee's catalytic converter plant; and the Sandusky, Ohio, bearing plant.
Delphi intends to keep just eight of its 29 U.S. plants. The rest will either be sold or closed.