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September 1, 2008

Auto Industry Skid Imperils Delphi

Filed under: Uncategorized — admin @ 12:28 pm

Bankrupt auto-parts maker Delphi Corp. is sliding deeper into financial trouble, raising doubts about its ability to survive as a stand-alone company, the Wall Street Journal reported today. Though the company is laboring to put together a reorganization plan, odds are increasing that the nation’s largest auto-parts maker instead will be liquidated, with some U.S. plants being taken over by its former parent company, General Motors Corp. Several financial hurdles loom in coming months: Delphi’s bankruptcy financing expires at year end, and there are indications that its current lenders may balk at renewing it. Its pension plan will need a large cash infusion or GM to take over some of it. The Pension Benefit Guaranty Corp. has already expressed concern about the growing possibility of the company’s liquidation.

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