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Originally Posted by Infiniti Z350
Here's GM's take on the matter:
On the other hand, GM estimates that it currently pays a purchase price premium to Delphi in the aggregate of approximately $2 billion a year above globally competitive market prices for systems, components and parts purchased from Delphi's North American operations. GM believes that a restructuring of Delphi through the Chapter 11 process provides GM with an opportunity to reduce or eliminate that purchase price premium, over time, as well as improve the quality of systems, components and parts it procures.
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There's the rub. As long as GM remains one of Delphi's largest customers, Delphi will never be altogether profitable. As soon as the union's broke and Delphi reports a measly $10 million profit, GM will take it through pricing concessions for parts. That's been going on between domestic OEMs and the supply base for the last few years. As bad as GM's own finances look, they've been milking the suppliers dry.
So for the time being, as GM can't squeeze Delphi for more pricing concessions, and as sales volumes for the SUV cash cow whittle down, GM's gonna be in for a world of hurt. Thus, I agree with goblue, GM's using this as an opportunity to bust the UAW without putting itself at a risk for work stoppages. The union now realizes where their stinginess got 'em. Three months ago, they wouldn't even accept health care plans comparable to salaried workers'. Three months in the future, they'll be looking at a 50% wage cut, and an even less-generous healthcare package.
Gettelfinger's an idiot.