Delphi in trouble

[AllForADeuce]

Delphi, who makes XM's Roady, Skifi and Roady2 is currently in talks with GM and the labor union to try and reduce labor costs. Delphi has just tapped into their credit line which is considered a last ditch effort in maintaining business oeprations. This is the last step before typically the last move done before putting bankruptcy paperwork in motion.

GM cant afford this. If Delphi goes into bankruptcy or goes under totally, GM will be stuck with all the pension and retierment accounts. This was a major problem for GM already and one key factor in GM's new "emplyoee discount" sales plan.

 

[stljohn]

> Delphi, who makes XM's Roady, Skifi and Roady2 is currently
> in talks with GM and the labor union to try and reduce labor
> costs. Delphi has just tapped into their credit line which
> is considered a last ditch effort in maintaining business
> oeprations. This is the last step before typically the last
> move done before putting bankruptcy paperwork in motion.
>
> GM cant afford this. If Delphi goes into bankruptcy or goes
> under totally, GM will be stuck with all the pension and
> retierment accounts. This was a major problem for GM
> already and one key factor in GM's new "emplyoee discount"
> sales plan.
>

Fact check:

Delphi was spun off from GM several years ago, GM has no responsibility for Delphi's pension. Delphi is struggling and did ask GM for help thinking GM would rather help their primary parts supplier then see them go under but its doubtful GM is in the position to do a lot even if it was willing.

The employee discount sales plan was to save GM's neck, not Delphi.

 

[AllForADeuce]

Re: Fact check

> Fact check:
>
> Delphi was spun off from GM several years ago, GM has no
> responsibility for Delphi's pension. Delphi is struggling
> and did ask GM for help thinking GM would rather help their
> primary parts supplier then see them go under but its
> doubtful GM is in the position to do a lot even if it was
> willing.
>
> The employee discount sales plan was to save GM's neck, not
> Delphi.
>


Silly me, I was quoting from Bloomberg channel 129 which I listen to part of the day. Not to mention this 8/1 WSJ.com article (keyword Delphi):

"GM doesn't have equity ties to Delphi, and Delphi employees aren't GM employees. However, GM could be liable for a portion of pension and retiree health benefits for Delphi's UAW employees, should Delphi seek a bankruptcy-court reorganization and terminate its pension plans. Delphi workers also have a limited right to return to GM, if GM has job openings.

Moreover, GM would have an incentive to avoid the potential disruption to its operations from a Delphi collapse. For example, a bankruptcy court could order GM to pay Delphi higher prices."

I believe you need an online subscription to access this WSJ.com article, I can lend you mine to access for the day. You might want to call Bloomberg and the WSJ to tell them they have it all wrong.

 

[stljohn]

Re: Fact check

> > Fact check:
> >
> > Delphi was spun off from GM several years ago, GM has no
> > responsibility for Delphi's pension. Delphi is struggling
> > and did ask GM for help thinking GM would rather help
> their
> > primary parts supplier then see them go under but its
> > doubtful GM is in the position to do a lot even if it was
> > willing.
> >
> > The employee discount sales plan was to save GM's neck,
> not
> > Delphi.
> >
>
>
> Silly me, I was quoting from Bloomberg channel 129 which I
> listen to part of the day. Not to mention this 8/1 WSJ.com
> article (keyword Delphi):
>
> "GM doesn't have equity ties to Delphi, and Delphi employees
> aren't GM employees. However, GM could be liable for a
> portion of pension and retiree health benefits for Delphi's
> UAW employees, should Delphi seek a bankruptcy-court
> reorganization and terminate its pension plans. Delphi
> workers also have a limited right to return to GM, if GM has
> job openings.
>
> Moreover, GM would have an incentive to avoid the potential
> disruption to its operations from a Delphi collapse. For
> example, a bankruptcy court could order GM to pay Delphi
> higher prices."
>
> I believe you need an online subscription to access this
> WSJ.com article, I can lend you mine to access for the day.
> You might want to call Bloomberg and the WSJ to tell them
> they have it all wrong.


Pull in your talons, darlin, I later learned there was something in the divestiture agreement making GM *partially* responsible in the advent of bankruptcy. Had you properly communcicated that there would have been no problem.