The consensus seems to be that Delphi’s decision to once again push back its deadline
for a motion to cancel the union contract was a healthy sign. The funny thing is, no one seems to be willing to give
any solid reasons that convince us to feel the same way.
Sure, it gives Delphi, the UAW and
GM six more weeks to hammer out a deal that hasn’t happened in the past four months – if indeed one can
be worked out (Wagoner isn’t making any promises) – but
what does such a deal really mean to the situation? GM can offer up a multi-billion-dollar buyout of the union, but
that will simply accelerate the automaker’s demise (think of how many new platforms could have been purchased with
the coin that GM will drop on this fiasco). And make no mistake; if GM goes down, it will surely take Delphi with it.
This is a two-way street.
In the meantime, Delphi continues to bleed cash at the rate of somewhere between $200M and $1B
for each month that the situation goes without being resolved. That’s money that will come from someone’s
pockets, or it’ll simply add momentum to the toppling process.
The number of outcomes in this situation have
essentially been narrowed down to two – GM pulls off a buyout like the Ford/Visteon deal and thereby adds in a bit more
forward stick on its own nosedive, or Delphi plays tough and the union strikes. If anyone has any other scenarios, feel
free to post ’em, and hopefully the various parties involved will take note. Until them, I think they’re just biding
their time until there’s nowhere else for this situation to go but in the ugliest direction.