Auto Industry Skid Imperils Delphi
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.

