Maybe I missed it but haven't seen anything on this here. This looks like really bad news, massive layoffs on one hand, more loss of pension funds on the other. Don't know its the cost of oil again but any way for workers to escape this squeeze, any other way to forestall resulting economic downturn? Thoughts?
October 10, 2005
BY MICHAEL ELLIS
FREE PRESS BUSINESS WRITER
General Motors Corp. might ultimately lose more than $12 billion from Delphi Corp.'s bankruptcy filing on Saturday -- or it might cost the automaker nothing significant.
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DELPHI AT A GLANCE
Number of workers: 185,000 worldwide (as of Aug. 8).
Number of workers in Michigan: 14,700.
History: Delphi traces its heritage back more than 100 years to the start of the automotive industry, claiming many firsts, including the first electric starter to replace hand-cranking the engine; the first in-dash radio; the first power steering, and the first catalytic converter. Spun off from General Motors Corp. in 1999. Prior to the spin-off, Delphi was known as GM's Automotive Components Group.
Number of plants: 167 wholly owned manufacturing sites, 41 joint ventures, 53 customer centers and sales offices and 33 technical centers in 38 countries (as of Aug. 8).
2004 sales: $28.6 billion, with 54%, or $15.4 billion, to General Motors.
2004 net loss: $4.8 billion.
Chief executive: Steve Miller.
Friday's closing stock price: $1.12, after a one-day drop of more than 49%
What is Chapter 11? Under U.S. bankruptcy law, a company filing under Chapter 11 of the code can get relief from its creditors while it tries to put its financial house in order. With the court's approval, a company can temporarily delay paying its debts and get out of leases and other obligations, thus gaining time until it works out a plan to stay in business.
SUPPLIER BANKRUPTCY FILINGS
•Key Plastics LLC, Farmington Hills. Chapter 11. Filed April 2000. Dallas turnaround firm Carlyle Management Group bought it a year later.
•Cambridge Industries Inc., Madison Heights. Chapter 11. Filed May 2000. Meridian Automotive Systems, Dearborn, acquired the firm.
•Federal-Mogul Corp., Southfield. Chapter 11. Filed October 2001. Awaiting hearing date on reorganization plan.
•Hayes Lemmerz International Inc., Northville. Chapter 11. Filed December 2001. Emerged June 2003.
•DCT Inc., Sterling Heights. Involuntary Chapter 11. Filed February 2002. Company closed.
•Aetna Industries Inc., Center Line. Chapter 11. Filed February 2002. Bought out of bankruptcy by Questor Management Co. the next month.
•Exemplar Manufacturing, Ypsilanti. Chapter 11. Filed in January 2003. Company closed.
•Venture Industries, Fraser. Chapter 11. Filed March 2003. Last month, a judge denied its plan to exit bankruptcy.
•Rouge Steel, Dearborn. Chapter 11. Filed October 2003. OAO Severstal bought it in January 2004.
•Intermet Corp., Troy. Chapter 11. Filed October 2004.
•Oxford Automotive, Troy. Chapter 11. Filed December 2004. Emerged in 2002 from a previous Chapter 11 filing.
The only thing for certain is that it will end up as one of the many issues to be sorted out in U.S. Bankruptcy Court in New York, where proceedings for Delphi are to begin Tuesday.
At the extreme, GM estimated that it could be forced to pay Delphi up to $11 billion in the future for the pension, health care and other benefits that Delphi's retirees expect over the remainder of their lives, the automaker said in a news release late Saturday....