General Motors recently announced its intention to quickly sell Nexteer Automotive. This was a former Delphi arm which manufactures steering assemblies and drivelines. Delphi was owned by GM until 1999, which essentially means GM is trying to dump a reacquisition.

After four years in bankruptcy, Delphi emerged as a much smaller company. Delphi’s sales have declined by more than half since entering bankruptcy and most of its manufacturing occurs outside of the United States.

At the forefront of Nexteer’s products is Electric Power Steering (EPS) that does not require hydraulic fluids and is supposed to increase driving pleasure and provide better fuel efficiency. Any improvement to steering feel of boring EPS is worthwhile. Nexteer is also responsible for the Magnasteer system which can be seen in the Cadillac DTS, among other applications. This system increases steering resistance as speed increases, providing stability on the highway. Magnasteer became standard on all Cadillac DTS models with the 2007 refresh. It was available only on models equipped with the NHP engine from 2000-2006.

According to General Motors’ press release, the sale will enable Nexteer to grow globally as an OEM supplier. Currently, the company supplies the Big Three, Toyota, Fiat, and Peugeot/Citroen. Nexteer’s products are also present in the fastest growing automotive markets, including India and China. As with other recent Delphi sales, probability points towards a Chinese buyer for Nexteer .