AP: Auto Supplier Delphi Files for Bankruptcy

[bpilgrim]

10.08.2005, 12:42 PM

Delphi Corp., the largest U.S. auto supplier, filed for bankruptcy Saturday, sending shock waves through the nation's auto industry, which already is weakened by high labor costs and falling market share.

The company's bankruptcy is one of the largest in the country's history.

Delphi filed to reorganize its U.S. operations in federal bankruptcy court in New York, where hearings are scheduled to begin next week. Delphi's non-U.S. operations were not included in the filing.

Delphi Chairman and CEO Robert S. Miller said the company hopes to emerge from Chapter 11 in early to mid-2007.

"We will make every effort to make this as quick as possible," Miller told The Associated Press on Saturday.

more..
http://www.forbes.com/work/feeds/ap/2005/10/08/ap2266956.html

peace

[acmavm]

1. Link?

.

[VegasWolf]

2. Hey Bush!! U Da Man!!! nt

[Botany]

3. the bush economic miracle rolls on.

when does this all end?

[Democrats_win]

4. How 'bout that bush economy!

[Octafish]

5. So it begins.

First goes the big suppliers. Then will follow the those who use their produces. It's the beginning of the end for the the Big Three.

Detroit's car companies -- for all their faults -- were responsible for the Great American Middle Class. The people Ford hired got paid $5 a day, an astronomical amount at the time. These employees not only could purchase the products they made, they could set money aside for a home, college, a boat, a second home...retirement.

Contrast that with what turdball Bush has in mind: The penuring of America.

[llmart]

28. When you live in this tri-county area of Detroit.....

you see every day the vast difference between the haves and have nots. There are three story, 6,000 sq. ft. homes in my area with 4 car garages and two hummers in the driveway and then there are the others who are scratching their heads wondering how they'll pay their fuel bills this winter.

Some of us had the foresight to see that this is what would happen with Repugs in control of everything but others just stupidly bought the "compassionate conservatism" bullshit.

[no_hypocrisy]

6. That does it! More tax cuts and tax breaks!

[norml]

7. It's a great way for companies to escape their debt, and to break their

contracts.

Too bad for those they owed something to, like their workers.

[AmandaRuth]

8. the only thing that will save them is

more tax cuts and lower wages. Ready for $9.00 an hour -

Wonder what shape the company would be in if we had national health care and some sort of limit on executive pay (meaning executive pay in all forms), and if they didn't have to compete with cheap overseas labor.

[norml]

9. Yahoo! Message Boards: DPH

Yahoo! Message Boards: DPH Add to My Yahoo



Previous 40 | Next 40 < First | Last > Msg #: Post New Message

# Subject Author Sentiment Recs Date/Time (ET)
21735 Re: delphi worker here
defenseman35ala 10/08/05 01:46 pm
21734 Real Life
h1020 10/08/05 01:46 pm
21733 Re: I love to see the Unions go Bust
mikeeee1006 10/08/05 01:46 pm
21732 Re: delphi worker here
cisco11500 10/08/05 01:45 pm
21731 Re: contract means nothing now
mgftzgd 10/08/05 01:45 pm
21730 There you have it
buckibrown2 10/08/05 01:44 pm
21729 QUESTION!!!
lookplook 10/08/05 01:44 pm
21728 Re: Work sloooow down!
nativtarheel 10/08/05 01:44 pm
21727 Indexed Funds will dump Monday
psft99x 10/08/05 01:44 pm
21726 Re: Calm down and relax....
hayleyreagin Strong Sell 10/08/05 01:44 pm
21725 Re: Post-BK by Miller, short term
very_proud_dad 10/08/05 01:43 pm
21724 Re: cancel of common stock
gin_tonic100 10/08/05 01:43 pm
21723 Re: delphi worker here
mgftzgd 10/08/05 01:43 pm
21722 contract means nothing now
barkmill 10/08/05 01:43 pm
21721 Re: I love to see the Unions go Bust
cisco11500 1 10/08/05 01:43 pm
21720 NICE CHART !
xining7 Strong Buy 10/08/05 01:42 pm
21719 Re: MY WIFE IS GOING TO KILL ME
shortsightednesss 10/08/05 01:42 pm
21718 Re: Miller is Right
not_a_fortunate_s... 10/08/05 01:42 pm
21717 Re: MY WIFE IS GOING TO KILL ME
johnmcquire2 10/08/05 01:41 pm
21716 Re: Work sloooow down!
frogman_007_2000 10/08/05 01:41 pm
21715 Re: call delphi now 866.688.8740
barkmill 10/08/05 01:41 pm
21714 WHERE ARE ALL THE MORON LONGS!!!! NOW!!
championsies Strong Sell 10/08/05 01:41 pm
21713 Re: delphi worker here
defenseman35ala 10/08/05 01:41 pm
21712 Re: Calm down and relax....
factoryrat_2000 10/08/05 01:41 pm
21711 Re: I GAURANTEE THE DOW WILL BE 5,000 IN
firstflightusa 10/08/05 01:41 pm
21710 Re: delphi worker here
fundamentals12320... 10/08/05 01:41 pm
21709 Re: MY WIFE IS GOING TO KILL ME
tradenmachine Strong Sell 10/08/05 01:40 pm
21708 Re: delphi worker here
barkmill 10/08/05 01:40 pm
21707 Re: Where are all the MORON LONGS!!!!!!!
championsies Strong Sell 10/08/05 01:40 pm
21706 I love to see the Unions go Bust
unclebigs 5 10/08/05 01:40 pm
21705 Re: MY WIFE IS GOING TO KILL ME
mt_sirius 10/08/05 01:39 pm
21704 Re: OK - Now what do i do with my puts?
shortsightednesss 10/08/05 01:39 pm
21703 Re: WE NEED
firstflightusa 10/08/05 01:39 pm
21702 Re: MY WIFE IS GOING TO KILL ME
mgftzgd 1 10/08/05 01:38 pm
21701 Re: call delphi now 866.688.8740
mikeeee1006 10/08/05 01:38 pm
21700 Miller is Right
smkpit 1 10/08/05 01:38 pm
21699 Doesnt matter what they say
barkmill 10/08/05 01:38 pm
21698 Re: MY WIFE IS GOING TO KILL ME
unclebigs 1 10/08/05 01:38 pm
21697 Re: BOND ?
Cloque 10/08/05 01:37 pm
21696 DEAD CATS DO BOUNCE
tradenmachine Strong Sell 10/08/05 01:37 pm
Ignore Filter is Off < Turn ON > | Profanity Filter is Off < Turn ON > - Options - Help


http://messages.yahoo.com/?action=q&board=DPH

[onehandle]

10. They aren't a oil company or a war industry.

They never had a chance.

[IndianaGreen]

11. They wanted to cut hourly wages from $27 to $10.

Those of you that defend capitalism, you are witnessing capitalism at work.

[muriel_volestrangler]

15. But, on the bright side: Delphi execs get boost in severance pay

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=1834567

So, it can't be all bad news, eh? Those executives won't have anything to do with the company going bankrupt, I'm sure ... :sarcasm:

[IndianaGreen]

17. The corporations can re-structure their debts, while the workers

get stuck with the bills thanks to the new bankruptcy law.

Banks win all the time, like casinos!

[JohnnyRingo]

12. I'm a Delphi retiree

I'm so PO'd I can't think straight!

I CAN, however, assess blame. I was hoping Delphi could straighten out their finances with new leadership and an improved economy in '04.

Fuel prices and health care costs would have been unlikely to soar without the reinstitution of GWB and Govt oversight of the oil companies may have been possible with Democrat leadership.

This filing was accelerated by GWB's bankruptcy reform law deadline, leaving Delphi little incentive to retain the status quo and plod onward.

This is a sad day for America and here in the Mahoning Valley in Ohio in particular. My only consolation is that I have union brothers who voted for this bastard in '04 who are now in the same sinking boat I'm in.

Dumbasses....I warned them.
Now I blame them as co-conspirators in our own personal demise.
I better not see any of them soon.

I'm...one ...ANGRY democrat.

[sasquatch]

14. I'm a former Delphi employee

This isn't a shock but I bet the Bush voters get their asses kicked on monday.

[scarletlib]

22. I just read an article about this company earlier this morning

in this or general dsicussion forum. The management was asking employees to take a 60% cut in pay reducing wages to 10.00 dollars per hour on average. The same management just revised their severance to be extra cushy. I will try to find the article and link to this.

[bpilgrim]

24. Delphi demands 63% pay cut from UAW - Delphi execs get boost in severance

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x1834567

:hi: scarletlib

peace

[mahatmakanejeeves]

26. Welcome to the club

My mom is the surviving spouse of a USAir - USAirways employee. You'll get to learn all about Medicare, bankruptcy court proceedings, and the PBGC.

[sarcasmo]

30. You do realize when the Feds take over your pension.

You will be getting only fifty percent of what you currently receive.

[Tom Yossarian Joad]

13. I got an email from Delphi yesterday advising me of how to reduce

my risk of loss in continuing to supply them with equipment.

I nearly fell out of my chair.

[VegasWolf]

16. The Oil President torpedos the auto industry!! What irony! nt

[AX10]

18. "The Bush Economy": Remember that.

This is his economy now. It is his FAILURE too.

Bush is to blame for the failure of the economy, not Clinton, but Bush is at fault!

[AzDar]

19. Folks, I'm afraid we can't take 3 1/2 more years of this Idiot's policies.

He's killing us....

[Trillo]

20. "Not competitive" double meaning?

Executives' deal sweetened.

(emphasis added)
Delphi said 21 top executives will be eligible for 18 months of severance pay and at least a portion of their bonus if Delphi terminates their employment or they leave for "good reason." Previously, severance packages were capped at 12 months.

Delphi said it made the change after determining its severance package for top executives wasn't competitive. The new agreement doesn't apply to Delphi's Chairman and Chief Executive Officer Robert S. Miller, a restructuring expert who joined the company in July. Miller's base salary is $1.5 million.
...
James McTevia, a corporate restructuring expert based in the Detroit suburb of Eastpointe, said Delphi's action on severance packages is a typical move for a company preparing for bankruptcy.

"It's all part of a process of Delphi having an orchestrated plan to go into Chapter 11," McTevia said. "They're getting their ducks in a row. They're getting their management under control."
http://news.yahoo.com/s/ap/20051007/ap_on_bi_ge/delphi

Do these people that reporters often quote realize their hypocrisy? Are they lying to themselves?

When the term 'not competitive' is applied to workers, it means wages must go down, but when applied to executives, it means compensation rises.

[norml]

21. From Yahoo! Message Board: "GM is the villain"

GM is the villain
by: elvispoc3 (36/M/New Jersey) 10/08/05 04:09 pm
Msg: 22052 of 22103

IMO. They basically told Miller to Fuck Off by making a really low offer of bailout. Now, watch closely over the next quarter what happens to GM's stock as the BK fight begins.

If GM's right (I don't think they are), they will come out the other end of this bankruptcy smellin' like a rose. If GM's wrong, it means that they are in even deepeer shit than they've let on, they didn't have the money to bail DPH out, and they are treading water themselves.

GM's management doesn't have a lot of time to right the ship, given the current economic environment.

Short GM. They could have taken DPH back, saved thousands of job and still accomplished a significant savings on their legacy issues. Instead, they are playing hardball b/c their lawyers are telling them that the '99 paper (contracts/spin off) holds water. We'll see. I would not bet that a US Bankruptcy Judge is going to let the largest auto maker in the world pass their burden wholesale off on PBGC. GM will end up eating at least a good chunk of this in the end anyway, and they are playing a brinksmanship game with the UAW now.

It's on!!!


http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=15969441&tid=dph&sid=15969441&mid=22052

[ChairmanAgnostic]

25. they cut all research in efficient cars; they bet on heavy SUVs

GM is not just the villian, they are infinitely stupid and short-sighted. I wonder if they attended the energy meetings with Darth Cheney. If so, that might explain why they were so fuelish.

it is payback time, and with junk status for their stocks and bonds, I suspect that they are in a rocky situation. Except with the Hummer, they only made money on their leases and finance charges - because
their quality and choices for small cars was low/nonexistant/stupid
they did not try to work out the R&D for the future
they relied on their CPAs and the business degree holders, rather than their engineers.
a bad choice.

[JNelson6563]

27. This is going to hurt real bad

It's clear GM doesn't have the money to bail out Delphi, we are going to see the economy circling the bowl with greater intensity with these big companies hitting the skids like this. Many are going to get hurt badly (not the execs of course!).

Julie

[Bozita]

23. For auto workers, it's "Apocalypse Now" ... says DFP columnist

http://www.freep.com/money/business/walsh8e_20051008.ht...

TOM WALSH: For some in auto jobs, the apocalypse is now
All must feel, share urgency
October 8, 2005

BY TOM WALSH
FREE PRESS COLUMNIST

Will impending shakeouts at Delphi Corp. and General Motors Corp. be apocalyptic events for Detroit's auto industry, shattering forever the notion that America's industrial working class could expect good wages, company-paid health care and secure retirements in perpetuity?

A frustrated UAW President Ron Gettelfinger talks like doomsday is near.

"People who live in gated communities in this country need to think about where we're headed," Gettelfinger said Friday, suggesting that the nation's working class is trapped in a downward wage-and-benefits spiral and getting pretty darned angry about it.

Gettelfinger was fending off questions Friday from reporters about the UAW's progress -- or lack of same -- in talks with GM and Delphi when he let loose with a rant about the U.S. trade deficit, cheap labor in China and Mexico, and free-trade agreements that he claims are pushing U.S. workers out of the middle class.

more...

For the two news articles about Delphi that spurred this column, see the LBN link:
http://www.democraticunderground.com/discuss/duboard.ph...

[sarcasmo]

29. GM is watching this closely and will follow suit.

Wages are going from 26 dollars to 10-12 dollars. 1400 jobs cut here in West Michigan if the UAW doesn't take the cuts.

edit for spelling.

[borlis]

31. This has me shaking in my boots.

The company my husband works for makes parts for Delphi. In fact, Delphi is their biggest account. My hubby is their account manager. I hope he has a job on Monday. :scared:

[cassiepriam]

32. A lot of companies continue to operate just fine after filing BK...

They do it as way to dump their debt and pension responsibilities.
The top dogs make a mint and everyone else is left holding the bag. (Stockholders, creditors, bond holders, employees, contract workers.) So, if your husband's company is a Delphi creditor (that is, Delphi owes them money) they are going to have to get in line with a gazillion others to try and collect. Good luck.
If I were your hubby I would get my resume out soon.

[cassiepriam]

33. Weren't charges filed against them on Friday in MI for cooking the books?

[BiggJawn]

34. "Falling Market Share"

HAA-LOW?????


I wanted to be an American auto company Exec, but I flunked the IQ profile. Not LOW enough!

[mbperrin]

35. High labor costs? Howzabout if the industry built cars that

people could BUY? Wouldn't the industry then need, like, MORE parts?

Never was a company that failed over wages to workers. Always sales. And sales are strictly managment territory. Nobody can give a counter example, I promise.

STUPID management, beginning in the White House, is killing the country.

[bpilgrim]

36. "Staggering Blow" - Delphi bankruptcy - 11 article flood in Detroit News

The entire front page is nothing but Delphi. None of it is good news.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=104x5017238

peace