Warranty Parts Claims

New York, NY: (Sep-27-07) General Motors Corp. brought charges against auto-parts maker Delphi Corp., over damage claims and warranties for parts it supplied. As part of a settlement reached, a federal judge approved a $200 million settlement between the parties. The deal calls for Delphi to pay GM $130 million in cash over time and ship about $70 million in replacement parts. Delphi said it retains the right to take action against other manufacturers of the products and will split with GM the money it recovers from the other firms. Sources claimed that the deal reduces more than $530 million in damage claims filed by GM in 2006. Delphi, the former parts-making division of GM, has been in bankruptcy since October 2005. Its $200 million warranty settlement with GM comes after the company reached a wide-ranging deal with GM to settle issues over supplies, pricing, retirement liabilities and plant closings and sales. [MARKET WATCH: WARRANTY CLAIMS]

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Published on Sep-28-07