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GM Loss Stemmed - 26 September, 2002

Earlier General Motors saw sales by the world's biggest auto parts supplier to its former parent fall by $3bn last year.The company expects these sales to remain at $17.5bn this year, with only a slight decline next year.

The company tries to stabilize its account.Analysts have been expecting further falls in the sales, which make up 65 per cent of Delphi's total, as the carmaker tries to reduce exposure to its biggest supplier.

Concerns have also been raised with GM reducing the specification of standard models and so hitting sales of higher-value optional extras.

Growth in GM sales would have to come from other manufacturers, and particularly from outside the US, where Delphi has secured major contracts with Renault-Nissan, PSA Peugeot Citroлn, Toyota and BMW.
In Europe the company expects sales to reach $5.67bn this year.

Total revenue is forecast to be at $26.8bn, up $800m. Next year it would rise to about $27.5bn.