will announce as early as Tuesday that it will buy
global steering business, the
Wall Street Journal
GM has been in talks with Delphi for several weeks in hopes of buying some of the auto-parts maker's plants that are central to GM's vehicle manufacturing, the
reports. Stuck in bankruptcy protection since October 2005, Delphi is GM's largest supplier and its former subsidiary.
The steering business is the first in what will likely be a series of purchases GM will make from Delphi, the
Terms of the deal aren't expected to be disclosed on Tuesday, one person told the
. GM is expected to turn around and try to sell the steering business as soon as possible, a separate person said.
The deal could potentially need approval from the
Department, which has a major say in GM's operations after giving it a $13.4 billion loan.
The deal would give GM more control over the production of its vehicles and allow it to back away somewhat from its intense participation in Delphi's reorganization process, according to the
Meanwhile, GM's Saab division will accelerate talks this week with "a number" of potential buyers, the unit's top executive told the
Saab Managing Director Jan Ake Jonsson said Saab is working with
and has begun discussions with potential investors from the auto industry and outside it. He declined to name any of Saab's suitors, but said it is possible a deal could be completed by next year.
In February, Saab week went into bankruptcy protection in a court-managed reconstruction process that aims to disentangle the brand from GM and make it more marketable. GM is looking to sell the division.
This article was written by a staff member of TheStreet.com.