JasonA Posted October 12, 2005 Report Share Posted October 12, 2005 How "separate" is Delphi to GM? Is Delphi a GM subsidiary? Or just a subcontractor (parts supplier)? In other words, how does Delphi's bankruptcy affect the day-to-day operations of GM? Folks on other auto forums I read predict that GM's bankruptcy filing is not far off now... Jason(2001 STS, White Diamond) "When you turn your car on...does it return the favor?" Link to comment Share on other sites More sharing options...
JimD Posted October 12, 2005 Report Share Posted October 12, 2005 What is now Delphi used to be an integral part of GM; the operation was spun-off as a seperate company several years ago. The GM exposure to Delphi's filing for Chapter 11 protection includes the union agreements with Delphi employees who were originally GM employees. Pensions, major medical coverage etc. were all guaranteed by GM for something like 7 or 8 years. And it has been less than the agreed time period. In the short term, GM 'might be' obligated to pay for parts that Delphi might not be able to deliver. There are probably a lot more details that GM insiders and Wall St. experts are concerned about. But another major cash flow drain is not what GM needs at this point. Jim Drive your car. Use your cell phone. CHOOSE ONE ! Link to comment Share on other sites More sharing options...
TexasAxMan Posted October 12, 2005 Report Share Posted October 12, 2005 Yep, GM's in trouble. Just look at their stock price, close to $70 in Q2 '02, now it's less than $30. The UAW contract is killing American carmakers, Ford won't be too far behind, I bet. Amazingly, Chrysler is still holding out OK. GM can build the best cars in the world, but if they can't get the prices down, it's gonna get ugly. Just my opinion. Link to comment Share on other sites More sharing options...
addison_ii Posted October 12, 2005 Report Share Posted October 12, 2005 I think Delphi spun off from GM in 1998. However in my hometown's paper it mentioned that Delphi is going to cut the starting wage from the average of $27.50 to about 12.25 give or take a few cents. this may affect the guys who are still working when the change goes into affect. Also those who reitre after the proposed change will probably have their pensions cut as well. Link to comment Share on other sites More sharing options...
OynxSTS Posted October 12, 2005 Report Share Posted October 12, 2005 At work there are a few of us who play the market and most of my buddies know how I feel about GM, including my position in the market... One came by my office today to apologize to me that he is shorting "my" stock.... I suspect that we are days away from Chapter 11 Easin' down the highway in a new Cadillac, I had a fine fox in front, I had three more in the back ZZTOP, I'm Bad I'm Nationwide Greg Link to comment Share on other sites More sharing options...
JimD Posted October 12, 2005 Report Share Posted October 12, 2005 At work there are a few of us who play the market and most of my buddies know how I feel about GM, including my position in the market... One came by my office today to apologize to me that he is shorting "my" stock.... I suspect that we are days away from Chapter 11 The futures of GM and Delphi (DPH) are tied together in the eyes of investors, gamblers and speculators alike. Take a look at the spike in trading volume of both companies since Oct. 10, 2005 (Delphi filed for Chapter 11 on Oct. 8, 2005; a Saturday). Financial media talking heads are asking their usual lineup of experts if the North American economy can really afford to let GM get to the point of filing Capter 11. And Kerkorian is lurking off-stage holding just a fraction less than 10% of the outstanding shares of GM. You can be sure he has a plan to 'restructure' the company. Jim Drive your car. Use your cell phone. CHOOSE ONE ! Link to comment Share on other sites More sharing options...
PAUL T Posted October 12, 2005 Report Share Posted October 12, 2005 I read the other day that only Delphi U.S. is filling chapter 11 and Delphi in other countries is o.k.. The world market is what is killing American companies. We build plants in other countries that have lower labor costs in order to compete in the world market. Until the "World" labor costs rise to an equal level to us, or we lower labor costs to compete, American businesses will suffer. I say send the labor unions to organize the other countries. We are in more of a "world" market than we tend to want to acknowledge. Link to comment Share on other sites More sharing options...
etcxtc Posted October 13, 2005 Report Share Posted October 13, 2005 How is Delphi's problems going to effect the service parts industry? Almost all GM factory replacement parts from PCMs, BCMs, modules of any shape, size and type, radios, amplifiers, HVAC equipment, etc. all have the Delphi label on them. Are we going to see prices skyrocket? Are we going to see parts availability problems? Just my train of thought... Link to comment Share on other sites More sharing options...
KHE Posted October 13, 2005 Report Share Posted October 13, 2005 Delphi received enough relief on their debt to continue day to day operations without affecting the supply or delivery. Kevin '93 Fleetwood Brougham '05 Deville '04 Deville 2013 Silverado Z71 Link to comment Share on other sites More sharing options...
jackc Posted October 13, 2005 Report Share Posted October 13, 2005 How is Delphi's problems going to effect the service parts industry? Almost all GM factory replacement parts from PCMs, BCMs, modules of any shape, size and type, radios, amplifiers, HVAC equipment, etc. all have the Delphi label on them. Are we going to see prices skyrocket? Are we going to see parts availability problems? Just my train of thought... This is my question too.... Are Delco and Delphi one-in-the-same? And if so, what are the odds that the restructured company would be quicker to discontinue slow moving parts for older lower-production vehicles (like many of our cadillacs)? Link to comment Share on other sites More sharing options...
TexasAxMan Posted October 13, 2005 Report Share Posted October 13, 2005 Delphi received enough relief on their debt to continue day to day operations without affecting the supply or delivery. I'm not arguing, but what is your source for this? Link to comment Share on other sites More sharing options...
KHE Posted October 13, 2005 Report Share Posted October 13, 2005 Delphi received enough relief on their debt to continue day to day operations without affecting the supply or delivery. I'm not arguing, but what is your source for this? www.delphidocket.com That is the website that Delphi set up to report the bankruptcy court proceedings. Kevin '93 Fleetwood Brougham '05 Deville '04 Deville 2013 Silverado Z71 Link to comment Share on other sites More sharing options...
Logan Posted October 13, 2005 Report Share Posted October 13, 2005 "Delphi's..announcement....just one day before filing bankruptcy-that it had sweented the severance packages for Delphi's 21 most highly compensated executives because the old severance package was- as a Delphi spokesperson put it- 'uncompetitive.'" Source UAW. Logan Diagnostic LLC www.airbagcrash.com www.logandieselusa.com www.ledfix.com www.ledfix.com/yukontaillightrepair.html www.ledfix.com/ledreplacements.html www.ledfix.com/j42385toolrental.html Link to comment Share on other sites More sharing options...
Ranger Posted October 13, 2005 Report Share Posted October 13, 2005 I am quite sure Delphi's employees will be more than happy to give up their pensions and benefits so that the 21 most highly compensated executives severance packages can be more competetive. I know I was. Link to comment Share on other sites More sharing options...
KHE Posted October 13, 2005 Report Share Posted October 13, 2005 Why should Delphi care if their severance packages are competitive???! Kevin '93 Fleetwood Brougham '05 Deville '04 Deville 2013 Silverado Z71 Link to comment Share on other sites More sharing options...
Ranger Posted October 13, 2005 Report Share Posted October 13, 2005 That's corperate bull$hit for "We take care of our own" (upper management). Link to comment Share on other sites More sharing options...
Marika Posted October 13, 2005 Report Share Posted October 13, 2005 That's corperate bull$hit for "We take care of our own" (upper management). If anything will come down, it usually happens about a week before Christmas. Historically, this is the time when large corporations, being the cold hearted buggers that they are, lay off thousands of employees. Merry Christmas from the capitalists that are destroying America bit by bit... If you really want to make people safe drivers again then simply remove all the safety features from cars. No more seat belts, ABS brakes, traction control, air bags or stability control. No more anything. You'll see how quickly people will slow down and once again learn to drive like "normal" humans. Link to comment Share on other sites More sharing options...
KHE Posted October 14, 2005 Report Share Posted October 14, 2005 "Delphi's..announcement....just one day before filing bankruptcy-that it had sweented the severance packages for Delphi's 21 most highly compensated executives because the old severance package was- as a Delphi spokesperson put it- 'uncompetitive.'" Source UAW. I read in the paper the other day that certain managers were being encouraged to stay on through the bankruptcy. This would make more sense for incentives ($$) rather than worrying that the severance packages were uncompetitive. Kevin '93 Fleetwood Brougham '05 Deville '04 Deville 2013 Silverado Z71 Link to comment Share on other sites More sharing options...
Ranger Posted October 14, 2005 Report Share Posted October 14, 2005 Yeah, UAL did the same thing. The elite (some of whom helped us get in ch 11) where given bonuses to stay on while the rest of us gave up pay, benefits and pensions. Link to comment Share on other sites More sharing options...
Willie Hank Posted October 14, 2005 Report Share Posted October 14, 2005 Yeah, UAL did the same thing. The elite (some of whom helped us get in ch 11) where given bonuses to stay on while the rest of us gave up pay, benefits and pensions. Come on, that's a fact of life in the business world. Nobody is going to stay around if you don't pay them an incentive to stick around.... 'Stay-put' agreements are a fact of life!!!! Link to comment Share on other sites More sharing options...
stsjoe Posted October 14, 2005 Report Share Posted October 14, 2005 Ranger and Willie, your both right! saw it first hand, Heilig Meyers Furniture. 1909-1999 R.I.P. 18 years down the tubes (but I miss the 6 weeks vacation the most ) Link to comment Share on other sites More sharing options...
JasonA Posted October 14, 2005 Author Report Share Posted October 14, 2005 My father-in-law works for Ethan Allen furniture. He's the engineering manager at a plant in Dublin, VA. The plant is semi-closing...going from manufacturing/distribution to solely distribution. They've offered him a job, probably for as long as he wants to continue to work (he's already 62), but the writing is on the wall for the plant to close completely. Just couldn't compete with "Made in China" furniture. Furniture is big business in Virginia and North Carolina. There's even a huge furniture show in Las Vegas I understand, designed to compete with the big'un in North Carolina every year. I bet there's an awfully large percentage of "Made in China" crap at that Vegas show too. Jason(2001 STS, White Diamond) "When you turn your car on...does it return the favor?" Link to comment Share on other sites More sharing options...
etcxtc Posted October 15, 2005 Report Share Posted October 15, 2005 I am so sick and tired of American jobs and product manufacturing going overseas. When I purchase something big or little, I will spend more for a comparable (sp) American made product than a foreign product. I don't carry an American Express card anymore because many of their "call-center" services are in India. Link to comment Share on other sites More sharing options...
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