General Motors said on March 3 it will provide financial support to its bankrupt former parts subsidiary to the tune of $150 million and exercise an option to acquire Delphi's global steering business.

GM said its decision to boost its support of Delphi's near-term liquidity needs to $450 million from $300 million will be effective March 24. The financing is subject to final approval by GM's board of directors, a bankruptcy court and the U.S. Treasury, which has loaned GM $13.4 billion to survive the current economic downturn.

"The business will be operated as a stand-alone business much as it is today and, at least in the near term, will be held in a wholly owned subsidiary of GM," the company said.

GM said the unit will continue to "aggressively" pursue new business opportunities and technologies in order to develop a "diverse customer base and the ability to self-fund" operations in the long-term.

The transaction is expected to be completed in the second quarter of 2009 and did not disclose the terms of the agreement, which includes employees, facilities, products, technical capability and intellectual property.

Copyright Agence France-Presse, 2009