GM hit by Delphi fallout

General Motors stock price fell almost 6 percent Monday morning, as analysts reacted negatively to GM’s exposure to bankrupt auto parts supplier Delphi. GM warned that it faced an increased risk of supply disruptions after its biggest supplier filed for bankruptcy over the weekend. However, GM says that it will not necessarily be liable for post-retirement health-care and pension obligations for Delphi’s ex-GM employees. Nonetheless, financial analysts are worried about GM’s future, with Bank of America estimating a 30 percent chance that GM itself will end up filing for bankruptcy.

By s.waterman@p1data.com
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General Motors stock price fell almost 6 percent Monday morning, as analysts reacted negatively to GM’s exposure to
bankrupt auto parts supplier Delphi.

GM warned that it faced an increased risk of supply disruptions after its biggest supplier filed for bankruptcy over
the weekend. However, GM says that it will not necessarily be liable for post-retirement health-care and pension
obligations for Delphi’s ex-GM employees.

Nonetheless, financial analysts are worried about GM’s future, with Bank of America estimating a 30 percent chance
that GM itself will end up filing for bankruptcy.