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Delphi Bankruptcy to cost GM 11 billion

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This is so painful to watch, so many people affected by this one.. I hope it doesn't cost GM too much, nor many people lose their jobs! Edited by Cremazie
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they were complaining about health care... try child support... man, if my kid cost me 11 billion i'd be pissed... BK for GM as well...
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It won't end up at 11 billion - that's a worst case. I think GM has some sort of preferred charge over Delphi's assets in the case of that clause being triggered Also that potential 11bill is not a cash outflow - it would be an addition to GM's existing 100 odd billion of long term pension liabilities - the interest on it is dwarfed by the 2 billion a year cost savings from reforming Delphi
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It won't end up at 11 billion -  that's a worst case.  I think GM has some sort of preferred charge over Delphi's assets in the case of that clause being triggered

Also that potential 11bill is not a cash outflow - it would be an addition to GM's existing 100 odd billion of long term pension liabilities - the interest on it is dwarfed by the 2 billion a year cost savings from reforming Delphi

[post="26467"]<{POST_SNAPBACK}>[/post]



No matter how you spin this, it's bad news for GM.
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This is so painful to watch, so many people effected by this one.. I hope it doesn't cost GM too much, nor many people lose their jobs!

[post="26420"]<{POST_SNAPBACK}>[/post]

People have been AFFECTED by this for decades. Shareholders of GM stock have been raked over the coals by the UAW, time to pay up.

the real reason that i respond to your post is to simply say:


UNION - NO
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this just goes to show that major business reform will be needed to fix this problem. its going to have to come from GM, and the unions.
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People have been AFFECTED by this for decades.  Shareholders of GM stock have been raked over the coals by the UAW, time to pay up.

the real reason that i respond to your post is to simply say:
UNION - NO

[post="26492"]<{POST_SNAPBACK}>[/post]


Oh, I thought it was to correct my spelling!
I am for unions, this secnerio is going to show that the unions will listen. I am sure they will.. it is a simple matter: Less money/benefits or No money/no benefits. There is going to be giveback now. Edited by Cremazie
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Just a note before we go down the union bashing road (yet again):

Did anybody else catch how the Delphi brass upped their severance packages the day before the bankruptcy filling? I'm not saying that union labor isn't part of the problem -- they certainly are.. but they aren't the only problem.
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Just a note before we go down the union bashing road (yet again):

Did anybody else catch how the Delphi brass upped their severance packages the day before the bankruptcy filling?  I'm not saying that union labor isn't part of the problem -- they certainly are.. but they aren't the only problem.

[post="26539"]<{POST_SNAPBACK}>[/post]

Yes, this has been noted several times.

The thing is, the severance package was upped to make them more competitive with other suppliers. Are the union contracts uncompetitive with other suppliers? No. Therin lies the difference.

Also, what is more of a drain on a company by a long shot? The severance package of executives, or the pay + benefits of workers?

Just something to think about.
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Did anybody else catch how the Delphi brass upped their severance packages the day before the bankruptcy filling? 


My understanding is that most of the "brass" are new executives who were not responsible for what happened in the past.
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Gm's stock is down...and still going down. This is not going to be pretty...
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Rick Wagoner now finds a huge problem on his hands. Basically Delphi can squeeze a lot of money out of GM. They can say: "We'll stop delivery to your plants until you pay us, because we have no money", and GM will have to pay up. Oops! Struck by the Rick again!
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Oh, I thought it was to correct my spelling!
I am for unions, this secnerio is going to show that the unions will listen. I am sure they will.. it is a simple matter: Less money/benefits or No money/no benefits. There is going to be giveback now.

[post="26511"]<{POST_SNAPBACK}>[/post]

They had their chance, they are no longer going to be invited to the party. I am already hearing rumblings from Delphi guys saying, keep us, we'll ditch the union....


UNION-NO
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http://money.cnn.com/2005/10/10/news/delphi_gm/

[post="26586"]<{POST_SNAPBACK}>[/post]


As soon as the media has a chance to digest the DPH filing (and specifically Miller's comments about the liklihood of GM and Ford entering Chapter 11), we'll start to see a slew of stories on this topic.

Incidentally, some of the big players on Wall Street are predicting Chapter 11 for GM based on their private meetings with.....GM executives.
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The thing is, the severance package was upped to make them more competitive with other suppliers.


I don't care how competitive the pay is -- for either the salaried workers or the hourly workers. I'm just saying that it's downright piss-poor management to add to the companies debt-load (for self gain) when the company is sliding into bankruptcy, all the while bitching about how the hourly workers are sucking up too much money. Kind of ironic how the corporate brass can piss and moan about payroll costs, but will jump at the chance to increase their own take. So what if they are underpaid in comparison to their companions -- nobody held a gun to their head to take the job -- they willingly took their positions. And when the company falls on tough times, they ask everybody else to take less, while not hesitating to add to their own personal wealth. That's a fine example of the great fiscal responsibility that heads most of these companies down the road to bankruptcy in the first place. I can't blame the unions -- they'll take as much as they can -- just as you or I would -- or, as in this example, the corporate lackeys did. If Delphi mgmt had the foresight, they would've stopped about 3 contracts back and said "no -- our company can't afford this contract". That makes them personally responsible in my book. They went ahead and signed the poor contracts that lead the company into bankruptcy -- and that's where the fault lies: with top management.
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I don't care how competitive the pay is -- for either the salaried workers or the hourly workers.  I'm just saying that it's downright piss-poor management to add to the companies debt-load (for self gain) when the company is sliding into bankruptcy, all the while bitching about how the hourly workers are sucking up too much money.  Kind of ironic how the corporate brass can piss and moan about payroll costs, but will jump at the chance to increase their own take.  So what if they are underpaid in comparison to their companions -- nobody held a gun to their head to take the job -- they willingly took their positions.  And when the company falls on tough times, they ask everybody else to take less, while not hesitating to add to their own personal wealth.  That's a fine example of the great fiscal responsibility that heads most of these companies down the road to bankruptcy in the first place.  I can't blame the unions -- they'll take as much as they can -- just as you or I would -- or, as in this example, the corporate lackeys did. If Delphi mgmt had the foresight, they would've stopped about 3 contracts back and said "no -- our company can't afford this contract".  That makes them personally responsible in my book.  They went ahead and signed the poor contracts that lead the company into bankruptcy -- and that's where the fault lies: with top management.

[post="26764"]<{POST_SNAPBACK}>[/post]

Delphi didnt sign any contracts. They inheritied them from GM. And do you honestly think if GM said they cant afford those contracts it would make a difference? The only reason they were signed is because they couldnt afford a strike either. How much would a strike cost? 2 billion a month, 3 billion a month? GM should have dealt with the unions 20 years ago when they had the money to.
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Well, yes you see, the wealthy are entitled

[post="26771"]<{POST_SNAPBACK}>[/post]

For someone who talks about jealousy alot, you sure seem jealous yourself.
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Kirk Kerkorian must be loving this, another opportunity to load up some more cheap GM stock.
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Kirk wants to make some money back on his investment. He'll push for union concessions and probably a GMAC spinoff. That's how I see it.
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Kirk Kerkorian must be loving this, another opportunity to load up some more cheap GM stock.

[post="26805"]<{POST_SNAPBACK}>[/post]



Like I said-this is going to get nasty.

And, no, I'm not talking about this thread.... :)
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