Delphi files for bankruptcy!

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Zim Hosein

Zim Hosein

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Nov 27, 1999
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CHICAGO (Reuters) - Auto-parts maker Delphi Corp. filed for bankruptcy on Saturday, hurt by high wage and benefit costs. It was the biggest bankruptcy filing in U.S. automotive history and promises to have a broad impact across the industry.

The largest U.S. auto parts supplier, as expected, filed for Chapter 11 protection in U.S. Bankruptcy Court in New York. Subsidiaries outside the United States were not included.

The Troy, Michigan-based company has struggled since it was spun off from former parent General Motors Corp. in 1999, posting net losses of $741 million in the first half of 2005 alone. It had sought financing from GM and sharp cuts in wages and benefits from the United Auto Workers union to restructure unprofitable U.S. operations.

The Chapter 11 filing for reorganization potentially allows steep cuts in wages, benefits and jobs to go forward without the UAW's approval, marking a big setback for the trade union. The filing is also likely to deepen financial woes at GM, which shares many of the problems that drove Delphi into Chapter 11.

"We are going to be taking a hard look at every line of business," Delphi Chief Executive Steve Miller said.

Delphi, which makes almost every component found on a car, has about 185,000 employees worldwide. It has about 50,600 employees in the United States, including 25,200 represented by the UAW.

Recent UAW reports that Delphi proposed cutting wages by more than half to $10 or $12 per hour were "directionally correct," Miller said.

'A SIGNIFICANT REDUCTION'

"I've been saying from day one that we need to be competitive with other suppliers or we will simply go out of business," Miller said.

He spoke of "a significant reduction" in U.S. employment but declined to be specific.

Delphi's filing listed assets of $17.1 billion as of August 31 and debts totaling $22.17 billion. It had revenue of $28.6 billion in 2004, including $12.7 billion from GM in North America. Continued ...

© Reuters 2005. All Rights Reserved.
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Delphi files for bankruptcy :Q
 
T

tami

Lifer
Nov 14, 2004
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what you need is 500 posts/threads per page. then you can search on the first page in addition to using the lousy search on the site :p

(that's how i double check, at least)

i wonder why search sort of worked before and now doesn't work at all though. seems odd to me.
 
B

BigJ

Lifer
Nov 18, 2001
21,330
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Instead of negotiating and getting decent wages, the UAW fvcked themselves over now.

Forget about wages, they're not even going to have jobs anymore.
 
dartworth

dartworth

Lifer
Jul 29, 2001
15,200
10
81
Originally posted by: BigJ
Instead of negotiating and getting decent wages, the UAW fvcked themselves over now.

Forget about wages, they're not even going to have jobs anymore.
Click to expand...




delphi isn't going out of business...
 
B

BigJ

Lifer
Nov 18, 2001
21,330
1
81
Originally posted by: dartworth
Originally posted by: BigJ
Instead of negotiating and getting decent wages, the UAW fvcked themselves over now.

Forget about wages, they're not even going to have jobs anymore.
Click to expand...




delphi isn't going out of business...
Click to expand...

From the article:

He spoke of "a significant reduction" in U.S. employment but declined to be specific.
Click to expand...
 
Zim Hosein

Zim Hosein

Super Moderator | Elite Member
Super Moderator
Nov 27, 1999
65,401
407
126
Originally posted by: tami
what you need is 500 posts/threads per page. then you can search on the first page in addition to using the lousy search on the site :p

(that's how i double check, at least)

i wonder why search sort of worked before and now doesn't work at all though. seems odd to me.
Click to expand...

~~~~ Forum Search Issues ~~~~ :)

 
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