Anyone Else Following Delphi's Bankruptcy?

[launderess]

As most know by now, the world's largest car part maker,Delphi Company has entered bankruptcy. This is going to be BIG,not only for the employee's of Delphi and General Motors, (Delphi was once part of GM, and spun off), but for Detroit and Michigan as well.

Really is sad so many American companines are going the bankruptcy route, but the pain is really going to hit hard this time, with the usual persons on the shorter end of the stick; read those in or near retirement and skilled union workers.

Launderess

http://www.detnews.com/2005/autosinsider/0510/14/C01-348481.htm

 

[48bencix]

GM is next

I think GM will be next. Then Ford. Probably in the next two years, but they may want to take advantage of the existing laws and do it NOW. GM is on the hook for up to 11 billion to Delphi for pensions/health benefits.

The Delphi (Remember Delco and Delco-Remy?) has many pensioneers who also recieve excellent health care benefits. It has been in print that GM has to charge an extra $1500.00 per vehicle sold to pay for health care benefits. Japanese companies have the advantage that the health care is not paid for by companies.

GM is bringing out new SUV's this New Year, just couldn't have worse timing with the price of gasoline. If you really need an SUV, that is you regularly tow or have large loads, you probably already have one, and it will last longer now that you are not driving it for every little thing. So I think their new line will be a huge flop. Plus they don't have anything attractive cars(Only rear drive cars are Corvette and some Cadillacs).

Ford is just about as bad off, huge legacy costs, poor product line except for the Truck lines. Ford Five Hundred is too heavy, too slow and just not attractive, like the Chrysler 300. And it's not rear drive either. In fact Ford just got rid of a pretty nice rear drive Linclon (LS) and the new replacement is front drive.

My hope is that when this all goes down, we really re-think how health care is paid for. Finally we will have to go to a system similar to other countries. And yes if you want you can still go to a Doctor of your choice if you have the money.

We really need to do this to remain competitive in the world wide market. And it would be funny/ironic if a Republican administration did it.

 

[Washaholic]

I live in and grew up in the Detroit area and I can honestly say I have never seen it this bad before. There are no automotive jobs here. Everyone is very nervous. I feel Detroit will never be the same.

Darin