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While most observers in the slow-motion Delphi bankruptcy train wreck assume that General Motors will step in to help bail out its struggling former subsidiary company (and its ex-GM workers), apparently there are limits to GM's largesse.

In the latest development, Delphi reports that it was unable to persuade GM to forego planned price reductions in Delphi's supply contracts to its biggest customer. Delphi says the contracts are unprofitable, and has said that it wants to renegotiate the contracts or get out of them entirely.

GM had agreed to delay imposing the agreed-upon lower prices for the first quarter of the year to take some of the pressure off Delphi, but now wants Delphi to start living up to its contracts.

[Source: Reuters]

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    • 1 Second Ago
      • 9 Years Ago
      "4. Delphi should strike!!!!"

      Delphi can't strike.
      The IUE and UAW can. :)

      In fact the IUE has already voted in 80% in favor of strike action if Judge Drain agrees to throw out Delphi's union contracts. He will probably do just that, and also cancel the unprofitable contracts with GM.

      Whereas negotiations have broken down with the union and have now collapsed with GM, it appears we are headed for Armaggedon.

      This is a good thing.

      We have to clear the path to make way for a new automotive industry in America. It is clear that no one was really serious about avoiding the inevitable, and now it is staring us in the face.

      I say good job, Rick for almost pulling another rabbit out of the hat. You did good and achieved a lot, but the party's over now.

      Gettlefinger et al...good luck. You stood by your membership, just like you were supposed to.

      Steve...you are my hero! You're the only one who saw what was coming down the pipe and stood by your guns. Now close those worn out American factories and ship those jobs overseas. We're running a business here, not a social enterprise.

      Is it possible to save everybody from the oncoming onslaught? You bet it is! But I'm not talking.

      Good night America.
      • 9 Years Ago
      Delphi should strike!!!!
      • 9 Years Ago
      All this strike talk is great, but it would be more effective it it were during the middle of the vehicle model year. By the time the strike might happen, it will be late May or June.....when the GM 2006 Model Year production is almost over. They don't care if the 2007 Model Year starts late. A strike last Dec. or Jan. would have been much more effective
      bill smith
      • 9 Years Ago
      The heck with Delphi, GM and the UAW.........they are all deadbeats........the pack ruin the US market and each are to blame.....union workers getting over $3,000/month pension, health care for life.......bull hockey...the people who got screwed here is the stockholders and low salary folk who made these companies.........
      • 9 Years Ago
      Maybe Delphi will have better luck in the European Market seeing as how they've contracted with ferrari and all.
      William Pen
      • 9 Years Ago
      Hey Jamie, your analysis is spot on but it surely does not give me joy, the prospects for the recapitalization of Detroit. I was asked to post this again: I work at Delphi as a contract worker. Stuff is starting to happen pretty fast now, I wanted to give all an update of truth not swayed by the Union or management. These are my observations:
      The piety has gone from their faces as the reality of the economic "come-up-ance" settles around as a noxious mist of plain truth. You can see the square jaws floating around like sullen apparitions across the great manufacturing expanse. In 1999 (parties over) all knew this would be the outcome, still many piled on debt with big SUV's, pompous new houses and other financial bad sense. The sad part is the rank and file are all but unhireable, most posessing no desireable skills for prospective employers. The reputation of the Delphi worker and organized auto worker in general is less than glowing, horrible in fact ! The Union has formed them into whiny, demanding, lazy, malcontents of uselessness. They are the epitome of underachiving no matter what pablum you might be fed by the Press about them. This attitude and at 28.00 an hour, some body help me here please. They are 3 times more likely to have a Workmans Comp. claim, and a tremendous percentage of the hourly workers posess one or more of these claims. Answer yes to this question on a job application and see how fast you get hired. The Union hurt these people implying a false sense of Job Security and ruining them in the meantime.
      As I figured there is a massive campaign to hire new employees going on now at our plant with ads in the local rags expousing wages of 10.78 too 14.00. The employment offices have been inundated with applicants explained as many thousands. There is product to be made here. The products we make are in demand, just unprofitable with the current bloated compensation packages and other management malfesience.
      Most hourly EE's I talk with that are elligible are electing to take the buyout, there is a large percentage of these folks, probably 60 % of the total hourly people. What is really sad is the prospects for the salaried employees. Standard severance pay and probably no pension, sadness doth prevail here !! Another sad scenario is the loss of stock, many EE's hourly and salary, motivated by happy management offering incentives, purchased a helluva lot of Delphi stock through the years which is now absolutely worthless, some saw this as their life savings---now dashed against the corporate rocks !! A lot of people lost a ton of money and are maddern' heck.
      There is a sense of limbo here with no one knowing whats really going to happen about anything except maybe the buyouts. Myself being a contract worker I just continue to come to work not being told anything about my employ, for months it's like, "We'll let you know if we hear anything" a real smoke and mirrors show. Hopefully being contract will be beneficial in this scenario not considered one of the real Delphi EE's (whom are about to be offed). "Goodbye Mr. Goodbar", goodbye Union, goodbye fossilized middle class. This plan ain't gonna stop with Delphi--mark my words !!! Now please "Bow Your Heads". Thank you---- William Pen

      • 9 Years Ago
      Let me see if I understand. Mr. Miller wants what is left of his workforce to take a sixty percent pay cut, wants his biggest customer to pay higher prices because he says Delphi can not afford to sell at current prices. Is this the same delphi management team that just paid 1.2 million dollars for a cruise for 400 guests? Is this the same management team that asks the court to approve huge bonuses for the executives? Now, I wonder where the problem could be? This is a hard one to figure out. I know, lets ask Ross Perot if he can figure it out. It seems to me like the captain of the Titanic is blaming the crewmembers who shovel coal into the furnaces for the ship hitting the iceberg.
      • 9 Years Ago

      Yeah, better luck next time, right? Kind of like the alcoholic saying that this will be his last drink.

      I want all you UAW members to know that there is a alot of support for your cause. It's Springtime, the weather and warmth have returned...get ready to make the most of it and strike this hardassed Mr. "Steve".

      Burnin' Down the House... Fire!!

      Why? Because you only live once...make the most of your god-given life, instead of being used as a doormat by Mr. "Steve" himself...which he will glady do.