Delphi to spin off powertrain unit into separate company

Associated Press

DETROIT

Automotive parts and electronics maker Delphi Corp. plans to spin off its vehicle powertrain operations into a separate publicly traded company.

The British company with U.S. operations in suburban Detroit says Delphi shareholders will get stock in both companies in the tax-free deal.

Shares of the company surged more than 10 percent to $86.49 Wednesday.

Delphi, the former parts arm of General Motors, has been shedding conventional automotive businesses ever since it was spun off as a separate company by GM in 1999.

On a conference call with reporters Wednesday, CEO Kevin Clark said the powertrain unit’s work on gasoline direct injection and variable valve timing technologies that make internal combustion engines more efficient will be good business for a long time, citing projections that combustion engines will power 95 percent of the world’s cars in 2025.