Bailout Watch 203: Delphi Rallies the Troops for Bailout Billions

Robert Farago
by Robert Farago


Delphi has been a part of the successful effort by auto suppliers in the U.S. to assure they are eligible for some of the $25 billion in direct, low interest federal loans to be used by the auto industry to accelerate development of advanced technology vehicles in the U.S. Auto companies and suppliers are now applying for these funds, which won’t be available anytime soon.

But with the U.S. auto industry hit at every level by the global financial crisis, Delphi’s Detroit-based customers are now asking the federal government for further help that can be made available immediately, help that is critical to the industry’s survival. Chrysler, Ford and General Motors are reaching out to their suppliers and other stakeholders for additional help, asking that Delphi and others contact Members of Congress.

Delphi is enthusiastically supporting the appeals from these three important customers, and U.S. employees are urged to immediately contact your elected officials in Washington. The key points to make are (1) further help for the U.S. auto industry – in addition to the low-interest loans for the development of fuel efficient technologies — is needed, and (2) auto suppliers should be included in any support package.

The automakers have set up special Websites and toll free numbers to assist you in making these contacts immediately.

To telephone your legislators in Washington, log onto Chrysler’s or Ford’s call or dial GM’s 1-866-471-5332.

To e-mail the Members of Congress who represent you, log onto Chrysler’s, or Ford’s, or GM’s and look under “Mobilize Now.”

The companies are offering talking points that you can use in your telephone calls and e-mails in addition to the key points underlined above:

Chrysler says, “The failure of one or more of these manufacturers and their component suppliers could eliminate as many as five million jobs. Our industry represents almost four percent of the U.S. gross domestic product and represents 10 percent of U.S. industrial production by value … helping our industry in the short –term will have a much lower cost than addressing the effects of a failed industry in the midst of an economic turnaround.

“Ford says, “Support the proposed package of bridge loans to help the U.S. auto industry weather this economic crisis.” Ford points to a recent memorandum by the Center for Automotive Research as making compelling points on what would happen if the U.S. auto industry contracted by half or 100 percent.

The Center for Automotive Research (CAR) says, “We assume in our 100 percent contraction scenario that not only does domestic production by the Detroit companies fall to zero in the first year, but that domestic production in the U.S. by the international producers (a.k.a. “transplant” automakers) also falls to zero … because we expect a major wave in supplier bankruptcies or a ‘supplier shock.'” (CAR,, is a nonprofit organization whose work includes industry research and public policy advice.)

GM says, “Carmakers can’t get loans to complete their restructuring and put advanced technology vehicles into production. Customers can’t get credit for new cars, and consumer confidence has plunged to an all-time low. Suppliers and dealers can’t get loans for routine business needs. This crisis caught the U.S. auto industry in the midst of a successful restructuring.”

Thank you for your prompt attention!

Delphi Corporate Affairs

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2 of 4 comments
  • Ihatetrees Ihatetrees on Nov 18, 2008

    W!T!F!? Why hasn't Delphi been liquidated yet? Or are we waiting 'till 2010 for that too?

  • Mr_min Mr_min on Nov 18, 2008

    'Tongue firmly in check' Hmm I wonder if Denso & Bosch are also rallying the troops to support the bailout!! No wait, other car companies, other than GM that is, actually "want to" buy their parts.

  • KevinB Starbucks for a doppio espresso and gruyere and bacon egg bites in the morning, and a salt caramel cold brew in the afternoon, because I am eating and drinking myself silly at my destination.
  • MaintenanceCosts The previous generation is one of the best ways in the last 20 years to enjoy flagship-level luxury in complete anonymity.This generation is all tacky ostentation and I'd feel embarrassed to be seen in one.
  • Gene I agree that sedans sell well. Kia, Hyundai, BMW, Mercedes, Lexus, Infiniti, etc. I was very disappointed when Ford and Lincoln dropped Sedans and coupes (other than the Mustang that I have for summer weekends). I don't know where I'm going to buy my next "car". Sorry, no pick-up, suv, cuv , pms or xyz's for me. Gone thru that already.
  • Inside Looking Out "it's a Bolt that has Ampera badging and the Ampera grille." EVs do not have grills.
  • Inside Looking Out "Dmitry Medvedev recently took a trip to China and praised the country’s cars as being on par with Mercedes-Benz."That's all you need to know about Medvedev. He is not trustworthy because it is lie.