GM to Sell Parts Plants in Canada and Michigan

General Motors Corp. agreed Tuesday to sell four parts plants in Michigan and Ontario, Canada, for an undisclosed price to a company formed by Wall Street investors Joseph Littlejohn & Levy.

The plants’ 5,900 workers build interior trim and seats, metal stampings, door hardware and other parts. The transaction, agreed to in a memorandum of understanding, is expected to be completed by next month.

Edward Gulda, the chief executive of Peregrine Inc., the company buying the plants, said he plans to create a major global automotive supplier and seek customers beyond GM. Last year the plants’ sales exceeded $1 billion.

“Over time we will invest the appropriate capital to bring the business to a world-class status,” Gulda said.

GM shares fell $1 to close at $54.625 on the New York Stock Exchange.

The facilities, all part of GM’s Delphi Automotive Systems parts-making unit, are the trim plant in Livonia, Mich.; the hardware plant in Flint, Mich.; the seat plant in Windsor, Ontario; and a stamping plant in Oshawa, Ontario.

Delphi is the world’s largest auto parts supplier.

GM had wanted to sell the plants because it can buy components they make at lower prices from outside suppliers. The auto maker has said 12 North American parts plants must become more profitable or be sold or closed, and analysts support that prospect.

“This is something GM had to do,” said Bear Stearns analyst Nick Lobaccaro. The sale wouldn’t have a major impact on GM’s bottom line, he said.