Delphi to ask judge to cancel contract

•DETROIT - In a move that would send shudders through an ailing U.S. auto industry, Delphi Corp. was expected to ask a federal judge to cancel its union contracts today following months of trying to reach an agreement with General Motors Corp. and its unions to lower workers' wages.

Delphi, the largest U.S. auto supplier, had set a deadline of Thursday to reach an agreement to lower wages for its 34,000 U.S. hourly workers, but it appeared unlikely Delphi would meet that goal. The United Auto Workers and GM hadn't agreed to Delphi's latest wage proposal as of Thursday evening.

In a message on its Web site Thursday, the United Auto Workers said Delphi would file motions to void its contracts this morning. Delphi spokesman Lindsey Williams said the company wouldn't comment on that posting.

U.S., EU file trade case against China

•WASHINGTON - The United States and the European Union on Thursday filed a trade case against China in a dispute involving auto parts as the Bush administration moved to deal with rising concern over a soaring deficit with China.

The complaint alleges that China is imposing high taxes on imported auto parts in violation of commitments it made when China joined the WTO in 2001.

The action was the latest sign that the administration is stepping up pressure on China in an effort to hold back a tide of protectionist sentiment in Congress.

GM plans to sell stake in Isuzu

•TOKYO - General Motors Corp. said Thursday it is in talks to sell its stake in Isuzu Motors Ltd. as the troubled company jettisons assets to raise badly needed cash and hang onto its title as world's biggest automaker.

Disposing of GM's 7.9 percent stake in the Japanese truckmaker would mark the latest retreat for a company besieged by staggering losses, labor problems and mounting competition, especially from archrival Toyota Motor Corp.

The move would also highlight GM's rapid pullout from Japan. Earlier this month, Detroit-based GM sold 17 percent of Suzuki Motor Corp. for about $2 billion, leaving it with a 3 percent stake.

That followed last year's sale of GM's entire 20 percent stake in Fuji Heavy Industries, the maker of Subaru cars.

- From wire reports