Delphi to Buy TRW Diesel Fuel-Injector Unit

Delphi Automotive Systems Corp., the world’s largest auto parts maker, said it will buy TRW Inc.’s diesel fuel-injector business for $871 million to take advantage of Europe’s fast-growing market for diesel engines. TRW acquired the unit this year in its $6.53-billion purchase of Britain’s LucasVarity, and the sale will help TRW pare debt. The unit had sales of $1.1 billion last year. The purchase furthers Delphi’s goal of adding customers other than former parent General Motors Corp. and makes it the No. 2 maker of diesel-fuel injectors, behind Germany’s Robert Bosch. Diesel engines now account for 25% of new cars and light trucks sold in Europe, and Troy, Mich.-based Delphi expects that to rise to 35% by 2010. Delphi shares dipped 7 cents to close at $15.75, and TRW fell 50 cents to close at $51.50, both on the New York Stock Exchange.