Delphi bankruptcy to cost U.S. at least $10 billion

today reports that a Michigan economic impact study shows that the Delphi Corp. bankruptcy will cost workers, retirees, other companies and automakers at least $10 billion in wages, benefits and profits by 2007 – and that’s the best-case scenario. The Anderson Economic Group study defines the best case as Delphi reducing operations by 20 percent and emerging from bankruptcy in 2007. This includes a reduction in U.S. employment of over 12,500. Michigan, home of Delphi’s headquarters, will be hardest hit in any scenario, with even the best case scenario including plant closings, thousands of jobs lost, and a state tax loss of $390 million. Other states that will be hard-hit include New York, Ohio and Alabama. [Thanks for the tip, Joel!]

By s.waterman@p1data.com
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The Detroit News

today reports that a Michigan economic
impact study shows that the Delphi Corp. bankruptcy will cost workers, retirees, other companies and automakers at
least $10 billion in wages, benefits and profits by 2007 – and that’s the best-case scenario.

The Anderson Economic Group study defines the best case as Delphi reducing operations by 20 percent and emerging from
bankruptcy in 2007. This includes a reduction in U.S. employment of over 12,500.

Michigan, home of Delphi’s headquarters, will be hardest hit in any scenario, with even the best case scenario
including plant closings, thousands of jobs lost, and a state tax loss of $390 million. Other states that will be
hard-hit include New York, Ohio and Alabama.

[Thanks for the tip, Joel!]