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General Motors Corporation  (GM), other creditors and Delphi Corp. (DPHIQ.PK), the bankrupt auto parts company, are near an accord that hopes to avoid a crippling strike at the world's largest automaker.

In the accord GM would subsidize Dephi workers' pay and prolong contracts for parts purchases, locking in future revenue for Delphi. With the GM financial help, Delphi's former parent and biggest creditor, may allow the parts producer to scale back wage cut demands and ward off a United Auto Workers strike.

GM admits that avoiding a long walkout while resolving issues with Delphi is the biggest challenge facing the automaker. GM is Delphi's largest customer and a widespread strike would close GM plants in North America within 48 hrs, according to Sean McAlinden, an analyst with the Center for Automotive Research in Ann Arbor, Michigan, as reported in this Bloomberg.com article.

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