Delphi Files Chapter 11
Published: 11 October 2005
by Mike Buetow
TROY, MI -- Months after posting staggering first-half net losses of $741 million, Delphi Corp., the
largest maker of auto parts in North America, filed for Chapter 11
bankruptcy on Saturday. The company plans to slash manufacturing
operations in the U.S.
Subsidiaries outside the United States were not included.
The company, spun off from General Motors in 1999, has been plagued by high wage and benefit costs. Yet Delphi also drew sharp criticism for handing fat severance packages for 21 top executives just a day before the filing.In a statement Delphi management indicated "a significant reduction" in U.S. employment but declined specifics. Delphi has about 185,000 employees worldwide, 50,600 in the U.S.
Delphi's filing listed assets of $17.1 billion as of Aug. 31 and debts totaling $22.17 billion. It had revenue of $28.6 billion in 2004, including $12.7 billion from GM in North America.
Delphi said it plans to emerge from bankruptcy in early to mid 2007.
