Delphi Looking to GM to Avoid Bankruptcy
Delphi Corp. (Troy, MI) is reportedly negotiating with former parent company General Motors Corp. and the United Auto Workers (UAW) union on a deal to help it avoid bankruptcy. New Delphi Chairman and CEO Robert Miller recently met with General Motors Chairman and CEO Rick Wagoner and UAW President Ron Gettelfinger to ask for help; Miller reportedly wants a deal by this summer.
Merrill Lynch analysts reported that if negotiations ultimately failed, bankruptcy for Delphi was a real possibility. It is in General Motors' interest to help Delphi, which employs about 5,400 hourly and salaried workers at Delphi Packard Electric, because it would have some liability for Delphi's considerable legacy costs if Delphi would file for bankruptcy before September 2007, when GM's contract with the UAW expires.
General Motors spokesman Jerry Dubrowski would not comment on the report.