Delphi Files for Bankruptcy; Reportedly Will Downsize

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uto-parts supplier Delphi Corp. filed for Chapter 11 bankruptcy protection Saturday and plans to shut down or sell a substantial portion of its U.S. operations, the Wall Street Journal reported Monday.

The company has 167 plants worldwide, including 45 in the United States, and last year took a $4.8 billion loss of $28.6 billion in revenue, including $15.4 billion from former parent General Motors Corp., the Journal reported.

Delphi, the largest U.S. auto-parts company, makes everything from fuel, ignition, heating and exhaust systems to brake modules and engine controllers.

The company did not release any details about which plants it might close, but has previously identified 11 plants that are unprofitable and could be closed or sold, the paper said.

GM said the filing could allow it to cut costs, as the No. 1 U.S. automaker now pays about a $2 billion price premium to parts it gets from Delphi, the Journal reported.

Delphi said it has secured $4.5 billion in third-party financing to finance its global operations and that it plans to emerge from bankruptcy in early to mid-2007, the Journal said.