GM indicates it may help Delphi; Visteon posts huge loss

For the first time, GM has given indication that it may be willing to help out Delphi. It’s a bit hard to say how exactly this would happen, but it could occur through price concessions, a handover of cash, or even through a transfer of uncompetitive plants as recently happened with Ford and Visteon. GM says that any moves will be made only for the benefit of GM shareholders, which means that they’d like to keep Delphi away from bankruptcy since that would drop $9B in liability into GM’s lap. Speaking of Visteon, they lost $1.2B last quarter. Most of this is related to write-downs for the plants they’re handing back to Ford; without those one-time expenses, the loss is “only” $100M or so.

By eric@bryantperformance.com
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For the first time, GM has given indication that it may be willing to help out Delphi. It’s a bit hard to say how
exactly this would happen, but it could occur
through price concessions, a handover of cash, or even through a transfer
of uncompetitive plants as recently happened with Ford and Visteon. GM says that any moves will be made only for the
benefit of GM shareholders, which means that they’d like to keep Delphi away from bankruptcy since that would drop $9B
in liability into GM’s lap.

Speaking of Visteon, they lost $1.2B last
quarter. Most of this is related to write-downs for the plants they’re handing back to Ford; without those one-time
expenses, the loss is “only” $100M or so.