Delphi

Heard this morning that Delphi has declared bankruptcy.
Management apparently voted itself a healthy benefits package just
before the filing. They hope to emerge in a couple of years.

Management being more important than workers, it is not surprising
that they protected themselves first.

Sounds like a chapter out of an Orwell novel, huh?

"lugnut" > wrote in message
...

> Looks like one of the big things these days is for the big
> guys to bail out on the pension plans they promised and
> contracted to provide over the years. They haven't bothered
> to fund the programs adequately over the years. Now, they
> are trying to shift the pension cost to the taxpayers while
> screwing the workers with both lower wages and reduced
> retirement if any at all. The pensions are an area where I
> think both the unions and the government have failed the
> workers by not making damn sure the pensions are secure or
> give the money to the workers with an investment requirement
> that they control. Maybe it's time to eliminate pensions
> that are entirely dependant upon the viability and existance
> of the company.
>
> My $.02
> Lugnut

I'm sure they wanted to break up legacy contracts, among other
things.

I heard that Delphi was not strapped for cash, but that this was a
good point in time for it to go bankrupt. (I'll have to research
that a bit and see if I heard, and understood, correctly.)

It is a serious commentary on business in America.

> wrote in message
...
>
> "lugnut" > wrote in message
> ...
>
>> Looks like one of the big things these days is for the big
>> guys to bail out on the pension plans they promised and
>> contracted to provide over the years. They haven't bothered
>> to fund the programs adequately over the years. Now, they
>> are trying to shift the pension cost to the taxpayers while
>> screwing the workers with both lower wages and reduced
>> retirement if any at all. The pensions are an area where I
>> think both the unions and the government have failed the
>> workers by not making damn sure the pensions are secure or
>> give the money to the workers with an investment requirement
>> that they control. Maybe it's time to eliminate pensions
>> that are entirely dependant upon the viability and existance
>> of the company.
>>
>> My $.02
>> Lugnut
>
> I'm sure they wanted to break up legacy contracts, among other
> things.
>
> I heard that Delphi was not strapped for cash, but that this was a
> good point in time for it to go bankrupt. (I'll have to research
> that a bit and see if I heard, and understood, correctly.)
>
> It is a serious commentary on business in America.
>
>

Companies who are not strapped for cash do not go bankrupt or ask for
protection from bankruptcy.
Delphi are major manufacturers and OEM suppliers in Europe as well as the
USA. This is a major problem for most major vehicle and plant manufacturers
who rely on Delphi products. I suspect that there is no way that the
important parts of Delphi will be allowed to cease production.

Huw

Huw wrote:

> This is a major problem for most major vehicle and
> plant manufacturers who rely on Delphi products.

I know what you are saying, but it is quite funny to see "rely" and
"Delphi" in the same sentence.

Toyota MDT in MO

"Huw" > wrote in message
...

> Companies who are not strapped for cash do not go bankrupt or ask for
> protection from bankruptcy.
> Delphi are major manufacturers and OEM suppliers in Europe as well as the
> USA. This is a major problem for most major vehicle and plant
manufacturers
> who rely on Delphi products. I suspect that there is no way that the
> important parts of Delphi will be allowed to cease production.
>
> Huw


'Not strapped for cash' was the comment. Have no idea what it portends.
Maybe
they have immediate operating capital, but are insolvent for the longer
haul. Hope
we can get to the bottom of it.

The stocks are in the dumper.

"Huw" > wrote in message
...

> Companies who are not strapped for cash do not go bankrupt or ask for
> protection from bankruptcy.
> Delphi are major manufacturers and OEM suppliers in Europe as well as the
> USA. This is a major problem for most major vehicle and plant
manufacturers
> who rely on Delphi products. I suspect that there is no way that the
> important parts of Delphi will be allowed to cease production.
>
> Huw

Found this on the net, Huw

"The auto parts maker is not cash-strapped but is filing to take advantage
of current, more lenient, bankruptcy rules, which are set to change on
October 17, making reorganizations more challenging.
It is also filing to pressure its unions to come up with wage concessions."



You can search that text string,if it is of interest to you.

> wrote in message
...
>
> "Huw" > wrote in message
> ...
>
>> Companies who are not strapped for cash do not go bankrupt or ask for
>> protection from bankruptcy.
>> Delphi are major manufacturers and OEM suppliers in Europe as well as the
>> USA. This is a major problem for most major vehicle and plant
> manufacturers
>> who rely on Delphi products. I suspect that there is no way that the
>> important parts of Delphi will be allowed to cease production.
>>
>> Huw
>
> Found this on the net, Huw
>
> "The auto parts maker is not cash-strapped but is filing to take advantage
> of current, more lenient, bankruptcy rules, which are set to change on
> October 17, making reorganizations more challenging.
> It is also filing to pressure its unions to come up with wage
> concessions."
>
>
>
> You can search that text string,if it is of interest to you.
>
>
*************************************
From
http://yahoo.reuters.com/financeQuot...7414513_newsml
A Delphi bankruptcy would be among the 15 largest since 1980, according to
the BankruptcyData.com Web site, based on total assets of about $16.6
billion at the end of 2004. Delphi had revenue of $28.6 billion in 2004,
including $12.7 billion from GM in North America.



Delphi posted net losses of $741 million in the first half of 2005, weighed
down by high wage and benefit costs inherited from GM and the automaker's
production cuts in sport utility vehicles and other slow-moving models.



Delphi's stock, which has traded above $9 during the last 12 months, fell
$1.08 to close at $1.12 on the New York Stock Exchange on Friday amid
concerns the company may be unable to reach a deal with GM and its unions to
avert a bankruptcy filing.

***********************

It sounds to me that they are very cash strapped , going from their losses
and the value of their 'junk status' stock, even prior to Friday. Of course
it is the job of the executives of the Company to talk the business up as
much as they can but the fact remains that they would run out of cash in a
few short months if nothing was done. 'While their cheques are not bouncing
yet, they would be very soon', is how I read it.



Huw

"Huw" > wrote in message
...

> ***********************
>
> It sounds to me that they are very cash strapped , going from their losses
> and the value of their 'junk status' stock, even prior to Friday. Of
course
> it is the job of the executives of the Company to talk the business up as
> much as they can but the fact remains that they would run out of cash in a
> few short months if nothing was done. 'While their cheques are not
bouncing
> yet, they would be very soon', is how I read it.
>
>
>
> Huw

Perhaps not 'would be' but certainly could be bouncing. Airlines have lost
amounts
like that for years in certain periods without always having to file for
bankruptcy.
You have to make some real money sometime or another. Accountants can
prepare
books to make the business look either overly optimistic or overly
pessimistic and
if they are careful, they can stay within the law.

Delphi wants to fire a bunch of people, cancel benefits and lower wages to
the
ones who stay, it seems to me. And they want to do this before the
bankruptcy
laws get more stringent. But of course they want to go home at the end of
the
day with their pockets full of money, having done a wonderful job of
streamlining
the operation. Those who are retained will do fine, and those who leave
will be
sopped up by other companies who want fine decisive management types like
this.

"Comboverfish" > wrote in message
ups.com...

> I know what you are saying, but it is quite funny to see "rely" and
> "Delphi" in the same sentence.

Even Toyota is using Delphi parts. Are you saying we shouldn't rely on
Toyota now becasue they are using Delphi parts?

Ed

> wrote in message
...
> Heard this morning that Delphi has declared bankruptcy.
> Management apparently voted itself a healthy benefits package just
> before the filing. They hope to emerge in a couple of years.
>
> Management being more important than workers, it is not surprising
> that they protected themselves first.
>
> Sounds like a chapter out of an Orwell novel, huh?

So why is it that Visteon (the Ford equivalent of Delphi), instead of
declaring bankruptcy, was able to force (coerce, persuade) Ford to take back
17 money losing plants and their UAW workers, and Delphi wasn't able to do
the same to GM? Seems to me that GM is getting the better deal. Delphi can
go bankrupt, cancel pensions, layoff union workers, and pay the executives
big bucks, without saddling GM with the UAW workers. Ford gets stuck holding
the bag. Did the UAW get a better deal when Ford spun off Visteon?

Ed