G.M. in Talks to Buy Back Delphi Plants

General Motors is in talks to reacquire parts of Delphi, the auto parts supplier it spun off a decade ago that is now in bankruptcy, a person with knowledge of the talks told DealBook.
The talks, which began in December, are meant to help G.M. in its own restructuring.
Under the terms of the proposal, G.M. would take back several Delphi plants that produce parts only for the struggling automaker, this person said. The two companies had previously worked out an agreement under which G.M. would essentially subsidize those operations, giving Delphi cash as it worked its way through bankruptcy.
The news was first reported by The Wall Street Journal on Monday.
Such a move by G.M. could help net it more money from the federal government.
But several challenges remain, including negotiations over price — Delphi has asked for about $2 billion, while G.M. would seek to pay a minimal amount because of its previous agreements — and with Delphi’s creditors.
The move would be similar to what Ford did with Visteon, the auto parts supplier it spun off around the same time that G.M. split off Delphi. In 2005, Ford bought back several parts facilities from Visteon.