Wild Ass Rumor of the Day: Delphi to Slice Hundreds of Jobs on Friday

Robert Farago
by Robert Farago
wild ass rumor of the day delphi to slice hundreds of jobs on friday

We have it from an insider that the bankrupt parts supplier Delphi is about to "downsize" its domestic ops. Not that it'll do them much good. Now that Appaloosa Investments and Friends bailed-out of Delphi's bail-out plan, the former GM division is on its last life. Although Delphi's suing its jilters, what are the odds that a judge can/will force Appaloosa to fork over the billions the money men didn't leave on the table? At best, more money will be lost on lawyers, all 'round. All of which means a Delphi Chapter 7 is just over the event horizon. GM will have to buy up (back) the Delphi bits it needs to keep building vehicles. And as GM's August 8th SEC filing points out, "In addition the Benefit Guarantees may be triggered which would result in additional liabilities to us. We may also be subject to additional litigation regarding Delphi." The flames of GM's cash conflagration continue… [thanks to you-know-who-you-are for the tip]

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  • Jolo Jolo on Aug 14, 2008

    star_gazer, there was a rumor years ago that Delphi would be absorbed back into GM, just before Delphi filed for chapter 11. Their customers outside of GM threatened to pull all their contracts if that happened for the same reason Delco/Delphi could not get any business when they were part of GM. The other companies did not trust GM and it would use Delco to spy on their upcoming projects. That was one of the main reasons Delphi wanted to spin off of GM, to get more non-GM business, which they were doing, but not fast enough to stay afloat. If GM pulls Delphi back if Delphi goes chapter 7, look to see contracts get slashed and GM will have to absorb the losses that Delphi will incur.

  • 66Nova 66Nova on Aug 14, 2008

    I wondered about Delphi when the very first thing they did when they were established was to build a huge shiny new headquarters building. Forget that silly stuff about trying to make some money, first priority is ordering some nice new classy office furniture.

  • 1996MEdition 1996MEdition on Aug 14, 2008

    I'll let you know if I have a job on Monday.

  • Star_gazer Star_gazer on Aug 14, 2008

    @ 1996MEdition Same here....