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]