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Govt OKs GM's use of $2.8B in govt funds to buy stake in its former parts supplier Delphi

From Ken Thomas, November 2, 2009 - 5:23 PM

Govt OKs GM's use of $2.8B in govt funds to buy stake in its former parts supplier Delphi

By Ken Thomas

Article Tools

WASHINGTON (AP) - General Motors says it has received permission to use $2.8 billion of its government aid to help buy part of troubled auto parts supplier Delphi Corp., the automaker's former parts division.

The Detroit automaker said in a regulatory filing with the U.S. Securities and Exchange Commission that the Treasury Department granted the release of $1.7 billion to acquire part of the new Delphi entity that emerged from bankruptcy protection. GM also will use $1.1 billion to buy Delphi's global steering business and four parts manufacturing facilities.

GM has received more than $50 billion in government aid. Delphi recently emerged from bankruptcy and GM agreed to buy an equity stake in the parts supplier as part of the deal.