RMONEY Loves $$$: Delphi Auto (major Romney investment) buys factories in China after firing 25K US

[kpete]

FRI OCT 26, 2012 AT 12:08 PM PDT
Breaking: Delphi Auto (major Romney investment) buys factories in China after firing 25K US workers
by distraught

October 26, 2012
TROY, Mich. (AP) — Delphi Automotive has completed its acquisition of FCI Group's motorized vehicles unit for 765 million euros ($987.5 million).
http://www.businessweek.com/ap/2012-10-26/delphi-automotive-closes-on-fci-unit-acquisition

[FCI] is owned by affiliates of Bain Capital.

http://www.businessweek.com/...

AP News
Delphi Automotive closes on FCI unit acquisition
Posted on October 26, 2012 Tweet Facebook LinkedIn Google Plus 0 Comments
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http://www.businessweek.com/ap/2012-10-26/delphi-automotive-closes-on-fci-unit-acquisition

TROY, Mich. (AP) — Delphi Automotive has completed its acquisition of FCI Group's motorized vehicles unit for 765 million euros ($987.5 million).

The deal, which was announced in May, allows Delphi to expand its global reach and its ability to make electronic connectors for vehicles.

The motorized vehicle business of FCI, which is based in the U.K., makes auto connection systems. It is owned by affiliates of Bain Capital.

Delphi Automotive PLC, based in Troy, Mich., spun off from General Motors Co. in 1999, went into bankruptcy court protection in 2005 and emerged four years later after cutting thousands of jobs and selling factories and businesses.

The company said Friday that it still expects the transaction to add 24 cents per share to its 2013 earnings, excluding acquisition-related costs.

http://www.dailykos.com/story/2012/10/26/1150732/-Breaking-Delphi-Auto-a-Romney-investment-buys-factories-in-China-after-firing-25K-US-workers

As The Nation has reported, Mitt Romney made a fortune off of the auto-bailout by investing in Delphi and screwing those workers.

Delphi’s stockholders—the Romneys included—had one easy way to rectify the harm to these pensioners, much as GM did for its workers: just pay up.

Making good on the full pensions for salaried workers would cost Delphi a one-time charge of less than $1 billion. This year, Delphi was flush with $1.4 billion in cash—
meaning its owners could have made the pensioners whole 
and still cleared a profit. Instead, in May, Delphi chose to use most of those funds to take over auto parts plants in Asia at 
a cost of $972 million—purchased from Bain Capital.

http://www.thenation.com/article/170644/mitt-romneys-bailout-bonanza?page=full#

Adding insult to injury, Delphi even kept Uncle Sam from taxing its profits by moving its location of incorporation from Troy, Michigan to the Isle of Jersey, a European tax haven.
http://www.dailykos.com/story/2012/10/26/1150732/-Breaking-Delphi-Auto-a-Romney-investment-buys-factories-in-China-after-firing-25K-US-workers

[Motown_Johnny]

1. Delphi closing up shop really hurt us around here.

I am on Detroit's east side and work for a landscaping company that does most of it's business in the Grosse Pointes. Many Delphi employees and executives were living in the Grosse Pointes. When they all left, almost at once, the property values took a big dive and even people who were well off stopped spending money on home improvements. We had a couple years when the big money jobs were few and far between.

Things have picked back up now but it sure was a hit.

[formercia]

4. Trickle-down economics

Does the back of your Neck feel warm yet?

[brentspeak]

2. According the article, Obama made all this possible

His administration caved to Delphi's demands.

[Paulie]

5. Of course! Obama did it retroactively

In 1999 and 2005.

[DainBramaged]

6. .....

[brentspeak]

7. So his guy didn't cave to the hedge funds' demands?

You should retroactively read the article.

http://www.thenation.com/article/170644/mitt-romneys-bailout-bonanza?page=full#

Rattner and GM, embarrassingly outmaneuvered, tried to put a good face on it. As Rattner (Obama's hand-picked millionaire hedge-fund manager turned bailout negotiator) wrote in his memoir, “In truth we didn’t care who got Delphi as long as GM could extricate itself from the continual drain on its finances and assure itself of a reliable supply of parts.”

[formercia]

3. This is why Mitt wanted Detroit to go Bankrupt.

He's just a fuckin' Vulture.