Delphi Announces New Worldwide Restructuring Plan
Delphi Automotive Systems (Troy, MI) confirmed intentions to sell, close or consolidate nine plants, downsize the workforce at more than 40 other facilities and exit selected, under-performing products. The restructuring plan will ultimately reduce worldwide employment by 11,500 positions. The plan includes exiting approximately $900 million of the company's businesses previously said to be under portfolio review. Delphi plans to take a charge against first quarter 2001 earnings of $400 million after taxes to speed moves. The nine plants being consolidated, closed or sold are in France, Brazil, Germany, Italy, the UK and the US.
Delphi Chairman, CEO and President J. T. Battenberg III commented, “This restructuring is necessary to strengthen Delphi in both the uncertain near-term environment and to compete and prosper for the long-term." He added, “Delphi is a company of talented, technically knowledgeable and skilled people, and that makes these restructuring actions especially difficult. However, these actions are consistent with Delphi's long-term plan and our track record of responding quickly to industry changes. Where possible, we will utilize attrition, special separation programs or other voluntary means to reduce worldwide employment."