Bailout Watch 203: Delphi Rallies the Troops for Bailout Billions

Subject: “PLEASE CONTACT YOUR ELECTED OFFICIALS IN WASHINGTON ASAP”

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 http://www.GrabDemocracyByTheHorns.com or Ford’s http://capwiz.com/ford/ call or dial GM’s 1-866-471-5332.

To e-mail the Members of Congress who represent you, log onto Chrysler’s http://www.GrabDemocracyByTheHorns.com/takeaction, or Ford’s http://capwiz.com/ford/issues, or GM’s www.gmfactsandfiction.com 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, www.cargroup.org, 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