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#1
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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? |
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#2
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"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. |
#3
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> 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 |
#4
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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 |
#5
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"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. |
#6
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"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. |
#7
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> 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 |
#8
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"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. |
#9
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"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 |
#10
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> 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 |
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