Gm Responds To Delphi Actions

Perian · 03-31-2006, 11:29 AM

Source: GM Media Center

Entire Statement:

DETROIT - General Motors Corp. (NYSE: GM) today said it is disappointed with Delphi Corp.'s (DPHIQ) decision to seek authority to reject certain supply contracts with GM but it remains committed to working with Delphi and its unions to reach a consensual agreement.

"We disagree with Delphi's approach but we anticipated that this step might be taken," said Rick Wagoner, GM chairman and chief executive officer. "GM expects Delphi to honor its public commitments to avoid any disruption to GM operations."

Delphi's motion for authority to reject certain GM supply contracts, as well as the company's motion to reject its labor contracts, is consistent with past practices of other suppliers in Chapter 11.

"Motions to reject labor agreements are fairly common in reorganization proceedings and we have seen this approach play out to agreed resolutions in other cases," Wagoner said. "GM will continue to work with Delphi, its unions and the court to achieve a consensual agreement that makes sense and is financially viable for all of the parties. We believe the special attrition program we agreed to with the UAW and Delphi last week is indicative of GM's commitment to reaching such an agreement."

GM's objective in the Delphi reorganization remains to ensure that Delphi can continue as a viable important supplier to GM on terms that make sense for both GM and its stockholders.

Perian · 03-31-2006, 11:30 AM

This isn't funny any longer.

Someone is about to take a huge hit.

Will it be the UAW?

Or will it be GM.

Perian · 03-31-2006, 11:32 AM

Quote:

Originally Posted by Perian

"We disagree with Delphi's approach but we anticipated that this step might be taken," said Rick Wagoner, GM chairman and chief executive officer. "GM expects Delphi to honor its public commitments to avoid any disruption to GM operations."

Earth calling Mr. Wagoner, earth calling Mr. Wagoner...Come in Mr. Wagoner.

56 Starchief · 03-31-2006, 11:45 AM

question of the day:

why did GM sell delphi if it still had this bloody surgery with it, and why only with GM does a company have obligations when it spins it off?--it could have avoided this by just keeping it since it has to pay obligations anyway and could have avoided this forseeable issue!

i swear to god; the union has come from being a positive counterbalance to corporations in its early days to becoming the cancer of the american economy.

i really am doubtful GM will make it clean with this one. say goodbye to your camaro, folks.

CarShark · 03-31-2006, 11:47 AM

Quote:

Originally Posted by Perian

Earth calling Mr. Wagoner, earth calling Mr. Wagoner...Come in Mr. Wagoner.

What does he think this is? An early April Fools' joke? I can tell you one thing, Steve Miller's not going to come out of the bushes to to startle him.

WishIhadatruck · 03-31-2006, 12:12 PM

Quote:

Originally Posted by 56 Starchief

question of the day:

why did GM sell delphi if it still had this bloody surgery with it, and why only with GM does a company have obligations when it spins it off?--it could have avoided this by just keeping it since it has to pay obligations anyway and could have avoided this forseeable issue!

i swear to god; the union has come from being a positive counterbalance to corporations in its early days to becoming the cancer of the american economy.

i really am doubtful GM will make it clean with this one. say goodbye to your camaro, folks.

I'm sure the UAW had a part in forcing this agreement onto GM. GM was surely hoping Delphi would survive past the length of the agreement which is only a year or two away.

01cavalier · 03-31-2006, 12:48 PM

I'd love to see the UAW get the shaft on this, but I doubt that will happen. The only way anything is going to happen is when membership ends up dropping to levels where they can have no power, not just with GM, but anything in the auto industry.

mkaake · 03-31-2006, 12:59 PM

I don't know... reading what Miller has recently said, I think he's going to give the union the shaft... but he might suceed in dragging GM down too. It's all a matter of how Wagoner handles it now...

Quote:

Miller, 64, said he will stick with his latest offer of giving workers a $50,000 bonus in exchange for an initial wage reduction from $27.50 an hour to $22 followed by a drop to $16.50 by Sept. 3, 2007. That offer is contingent on the United Auto Workers' consent and financial contributions from GM. Without that, Miller says he will cut wages to $12.50. --source

Steel4ring · 03-31-2006, 01:06 PM

My reading of this is as follows.

1. Delphi is going to bankruptcy court for approval of the deal cut last week.

2. Now that GM has helped to bail Delphi out on the labor side, Delphi is trying to nix it's supplier obligations to GM, to I guess negotiate for larger contracts.

That's a hell of a way to pay back the hand that feeds you.

RangeRover · 03-31-2006, 01:18 PM

Quote:

Originally Posted by Steel4ring

My reading of this is as follows.

1. Delphi is going to bankruptcy court for approval of the deal cut last week.

2. Now that GM has helped to bail Delphi out on the labor side, Delphi is trying to nix it's supplier obligations to GM, to I guess negotiate for larger contracts.

That's a hell of a way to pay back the hand that feeds you.

Hey, it's business! Delphi can't continue to survive with current labor costs or the contracts in their current form. For Miller it is either bite the hand that feeds you or shutter operations permanently. I think GM would rather have their hand bitten than see Delphi go under.

mantis662 · 03-31-2006, 01:25 PM

Quote:

Originally Posted by Perian

Earth calling Mr. Wagoner, earth calling Mr. Wagoner...Come in Mr. Wagoner.

Mr. Wagoner is not in right now, please leave a message at the beep.

rsbaker · 03-31-2006, 01:32 PM

Quote:

Originally Posted by 01cavalier

I'd love to see the UAW get the shaft on this, but I doubt that will happen. The only way anything is going to happen is when membership ends up dropping to levels where they can have no power, not just with GM, but anything in the auto industry.

I'm not as anti-worker as you are but it is clearly the time for unions to give back. If they give back now and save both companies they will be in better position to benefit when both companies are profitable again.

timman · 03-31-2006, 01:45 PM

Quote:

Originally Posted by Perian

This isn't funny any longer.

Someone is about to take a huge hit.

Will it be the UAW?

Or will it be GM.

It will be both.

zaxxis · 03-31-2006, 01:53 PM

Quote:

Originally Posted by mantis662

Mr. Wagoner is not in right now, please leave a message at the beep.

He's been out so long, the voice mail is full.

DuSpinnst · 03-31-2006, 01:55 PM

Why do you people think GM has been hording cash? They can take the Delphi hit, and if the Union Strikes Delphi will have Replacements in working within 3 weeks. Whatever GM doesn't bleed it will probably put into paying Delphi more and spending the rest on product development.

The Union will get the Shaft. That's the feeling you get around here in Detroit.

03-31-2006, 11:29 AM	#1 (permalink)
Perian News Contributor Join Date: Nov 2004 Location: New York Drives: 2008 Saab 9-5 Sedan Posts: 4,069	Gm Responds To Delphi Actions Source: GM Media Center Entire Statement: DETROIT - General Motors Corp. (NYSE: GM) today said it is disappointed with Delphi Corp.'s (DPHIQ) decision to seek authority to reject certain supply contracts with GM but it remains committed to working with Delphi and its unions to reach a consensual agreement. "We disagree with Delphi's approach but we anticipated that this step might be taken," said Rick Wagoner, GM chairman and chief executive officer. "GM expects Delphi to honor its public commitments to avoid any disruption to GM operations." Delphi's motion for authority to reject certain GM supply contracts, as well as the company's motion to reject its labor contracts, is consistent with past practices of other suppliers in Chapter 11. "Motions to reject labor agreements are fairly common in reorganization proceedings and we have seen this approach play out to agreed resolutions in other cases," Wagoner said. "GM will continue to work with Delphi, its unions and the court to achieve a consensual agreement that makes sense and is financially viable for all of the parties. We believe the special attrition program we agreed to with the UAW and Delphi last week is indicative of GM's commitment to reaching such an agreement." GM's objective in the Delphi reorganization remains to ensure that Delphi can continue as a viable important supplier to GM on terms that make sense for both GM and its stockholders.

03-31-2006, 11:30 AM	#2 (permalink)
Perian News Contributor Join Date: Nov 2004 Location: New York Drives: 2008 Saab 9-5 Sedan Posts: 4,069	Re: Gm Responds To Delphi Actions This isn't funny any longer. Someone is about to take a huge hit. Will it be the UAW? Or will it be GM.

03-31-2006, 11:45 AM	#4 (permalink)
56 Starchief 5.3 Liter Vortec V8 Join Date: Sep 2005 Location: NJ Drives: '56 Pontiac Starchief Hardtop '01 Ford Escape Posts: 1,475	Re: Gm Responds To Delphi Actions question of the day: why did GM sell delphi if it still had this bloody surgery with it, and why only with GM does a company have obligations when it spins it off?--it could have avoided this by just keeping it since it has to pay obligations anyway and could have avoided this forseeable issue! i swear to god; the union has come from being a positive counterbalance to corporations in its early days to becoming the cancer of the american economy. i really am doubtful GM will make it clean with this one. say goodbye to your camaro, folks. __________________ General Motors Today-Tomorrow-Always

03-31-2006, 12:48 PM	#7 (permalink)
01cavalier 6.0 Liter LS2 V8 Join Date: Jul 2005 Location: Portland, OR Drives: 2007 Cobalt Posts: 4,818	Re: Gm Responds To Delphi Actions I'd love to see the UAW get the shaft on this, but I doubt that will happen. The only way anything is going to happen is when membership ends up dropping to levels where they can have no power, not just with GM, but anything in the auto industry.

03-31-2006, 01:06 PM	#9 (permalink)
Steel4ring 3.8 Liter Supercharged V6 Join Date: Sep 2005 Location: Virginia Drives: 2008 GMC Acadia 2006 Chevy Colorado Posts: 539	Re: Gm Responds To Delphi Actions My reading of this is as follows. 1. Delphi is going to bankruptcy court for approval of the deal cut last week. 2. Now that GM has helped to bail Delphi out on the labor side, Delphi is trying to nix it's supplier obligations to GM, to I guess negotiate for larger contracts. That's a hell of a way to pay back the hand that feeds you.

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03-31-2006, 01:55 PM	#15 (permalink)
DuSpinnst Starship Enterpise Join Date: Jul 2005 Posts: 17,211	Re: Gm Responds To Delphi Actions Why do you people think GM has been hording cash? They can take the Delphi hit, and if the Union Strikes Delphi will have Replacements in working within 3 weeks. Whatever GM doesn't bleed it will probably put into paying Delphi more and spending the rest on product development. The Union will get the Shaft. That's the feeling you get around here in Detroit. __________________ The moderation here gets an F for FAILURE.

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