http://news.yahoo.com/s/nm/20051005/...utos_delphi_dc

How does GM get themsleves into these situations? Either bail Delphi out or pay approximately $11 billion to cover pensions if they file bankruptcy.

NEW YORK (Reuters) - Delphi Corp. (NYSEPH - news), the struggling U.S. auto parts supplier, is prepared to file for bankruptcy as early as this week as it lines up lawyers and consultants, the New York Times reported on Wednesday.
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The latest move came Monday when Delphi appointed David Sherbin as general counsel. Sherbin had worked with Delphi Chief Executive Robert Miller in the same capacity at Federal Mogul, which had filed for bankruptcy.

Whether Miller goes through with a bankruptcy filing for Delphi remains to be seen, the paper said. Miller has said he will file by October 17 at the latest, when U.S. bankruptcy laws change, unless former parent company General Motors Corp. (NYSE:GM - news) and the United Automobile Workers union agree to a multibillion-dollar bailout.

Delphi employs nearly 50,000 people and makes parts for most new cars and trucks sold in the United States.

A Delphi bankruptcy would be painful for GM because the automaker, under the terms of Delphi's 1999 spinoff, agreed to provide medical and pension benefits to Delphi retirees if the company went bankrupt before 2007.

There is also the issue of pension costs. Delphi has previously reported its pension obligations on behalf of workers exceed its plan assets by $4 billion, but a calculation by the U.S. Pension Benefit Guaranty Corp. -- obtained by the New York Times -- suggests Delphi's shortfall would be closer to $10.9 billion if the plan were terminated today.

 

No Bail Out!

 

I read where a few insiders thought that GM having to pay the pensions but letting Delphi file for bankruptcy would actually be VERY good for the big 3 in the long run. Basically it would be a precident for how hard things could be for the UAW. But I don't know enough about how things work in bankruptcy OR in Labor Union contracts to decide if it would be good or bad.

 

Wake up call... Wake up call to UAW... Wake Up call Mr. Bush...

Good Morning Congressman, we need about 10 Billion...

 

We're too busy spending it in Iraq. $10 billion? Right...

If this was Japan, the Japanese government would be in there helping out. But here? Nah...we'll let our last major industry fall victim to...wait for it...

THE JAPANESE.

 

Thats why the Japanese economy has been in a recession for 15 years

 

$200+ Billion is going to Iraq.

I could car less what happens to delphi, I'm not a fan of there stereos at least. I wish GM woould look to companies that know car stereos like Alpine or Pioneer.

something needs to be done about GMs healthcare cost. Here is my solution. Create a company called GM 2.0, have GM sell all brands and factories to GM 2.0. Then GM can file for bankruptcy and go out of businnes, and GM 2.0 can keep making the cars we love. It would be nice if it was this simple

 

Im prreeetttyy sure that Delphi is responsible for production of alot more components other than crappy GM stereos.

 

I tend to agree with the aboce statement regarding the fact that Delphi makes WAY more than stereos. Delphi makes nearly everything inside your Colorado. I recently worked on a commercial loan package where we gave funding to a local company that makes airbag cloth for Delphi. Thankfully for them, Delphi isn't a large customer of theirs...

And yeah, I'm also aware we're spending way more than $10B in Iraq. The $10B was in reference to NewbieWar's post.

 

Hey, I never said they had it all figured out either. But at least they're protective of their own products and companies...and it shows.

 

Yeah, no kidding. When Delphi was spun off from GM, it was around 1/3 of GM getting spun off. Delphi is a HUGE company, covering nearly all aspect of vehicle parts.

Dan

 

do you know how much attention that would cause, to completely liquidate debt like that?

that is probably the closest a corperation can come to fraud without crossing it...

i think Delphi going BK, is good... its a wake up call for USA, UAW, BUSH, Congress, Bankrupsy court... all the above

 

This will have a great effect on the already struggling Dayton economy.

 

Well it could also have something to do with US corps of old whose major holders would run them into the ground on purpose because it was actually profitable for them to do so. the history of US capitalism is full of irresponsible businessmanship (if that's a word). just recently we have Enron right? imagine in how much trouble the US gov't would be if it got caught helping out a company who's owners/holders willingly and/or deliberatly sunk the ship because it was in their best interest. Not saying this is anywhere near what's happening with Delphi, but there's a reason US gov't will do nothing to help out in this case. There's also the stigma that there's already too much gov't involvement in the business world as it is. If US gov't pulled out a handout for Delphi, I'm sure there would be 10 supplier firms standing in Washington with an open hand. And they'd be right to do so, "hey we're in trouble too".

the Japanese corps have their repts directly tied into gov't over there. so we should all be surprised if they did nothing to serve their own interests in that given situation.

 

Our money is too busy in Iraq to help our AMERICAN companies here in the US......just look at New Orleans.

Enough said!