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Delphi Tossing Unprofitable GM Contracts

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Delphi Tossing Unprofitable GM Contracts

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It's been a year since Delphi filed for Chapter 11 bankruptcy protection, and the supplier is still trying to find ways to return to profitability. One of the things it's identified as a way to get back into the black is ridding themselves of unprofitable contracts with General Motors. They have been quietly shifting some of these orders to outside firms. One example is the contract for GM full-sized pickup truck steering knuckles that recently went to EaglePicher Corp., which is no stranger to Chapter 11 itself.

Delphi also dumped the contract to build catalytic converters for GM's new pickups, which still had three years on it, according to UAW Local 1866 president Skip Dziedzic, in Milwaukee. No firm has been identified in taking over that order yet.

Read "Delphi dumping unprofitable contracts with GM" @ Autoblog

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I'm sure GM couldn't be happier... This way, GM won't appear to be abandoning their formerly 100% owned supplier. It's a two-way street. GM doesn't need to be stuck with inflated prices to pay for an over burdened supplier.

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One example is the contract for GM full-sized pickup truck steering knuckles that recently went to EaglePicher Corp

Who wants to bet we'll have a recall over this.....

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