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Delphi is to sell its global exhaust business as part of the company's plan to generate funds to enable it to emerge from bankruptcy protection.

The business to be sold involves design and manufacture of the front exhaust modules ("hot end") including catalytic converters and exhaust manifolds. Delphi says it has "more than 10 major customers".

The exhausts business has sites in Poland, Australia, India and South Africa as well as joint venture interests in Shanghai, China; and Monterrey, Mexico, and technical centres in Auburn Hills and Flint, Michigan, and at Bascharage, Luxembourg.

Delphi is also dissolving its alliance with Belgian group Bosal to offer complete exhaust systems. The alliance was announced in the spring of 2005. Delphi and Bosal together provided customised exhaust systems for automotive and commercial vehicle manufacturers worldwide to meet stringent exhaust emissions standards and reduce engine noise. The deal did not involve any exchange of equity.

Although Delphi intends to divest its exhaust business, the company is stressing that it intends to continue to provide full engine management systems, including air and fuel management, and combustion and valve-train technology.