MUNICH -- Delphi is selling its North American airbag, seat belt and steering wheel assets to Autoliv Inc., the world's No. 1 seat belt and airbag maker. Terms of the deal were not announced.
Autoliv said in a statement the assets included Delphi's steering wheel operations in Matamoros, Mexico, as well as its North American airbag and seat belt assets, which would be consolidated into existing Autoliv facilities.
A statement issued about the transaction did not identify specific U.S. operations being acquired.
In the statement, Autoliv CEO Jan Carlson said the deal "gives us an opportunity to provide our customers a seamless transition in supply of airbags and seat belts, as our own plants already are important suppliers to these customers.”
The transition is expected to occur during the next several months, the company said.
Delphi emerged from four years of Chapter 11 bankruptcy protection last month.
During the time, Delphi shed most of its U.S. factories and unionized work force to concentrate on its global electronics and climate control businesses. The supplier expects to post sales next year of less than $10 billion, compared with $22.59 billion in 2005.
Autoliv, based in Sweden, did not disclose the financial details of the deal, but said it expected sales at the units, which supply General Motors Co., Hyundai Motor Co. and Ford Motor Co., to total $125 million next year.
The transaction was expected to close by Dec. 31, Autoliv said.
Delphi ranks No. 7 on the Automotive News list of the top 100 global suppliers, with sales to automakers of $18.06 billion in 2008. Autoliv ranks 28th on the list with 2008 sales of $6.48 billion.
Reuters contributed to this report