Lutz Doubts Strike at Delphi, Dismisses Bankruptcy as "Media Created Fiction"

[Ming]

GM Executive Doubts Strike at Delphi
Published: April 12, 2006
By Simona Covel Of DOW JONES NEWSWIRES



GM Stock up to 20.03 +4.21%

NEW YORK -(Dow Jones)- Executives at General Motors Corp. (GM) don't believe Delphi Corp. (DPHIQ) workers will strike, said Robert Lutz, the auto maker's vice chairman of global product development.

"We just absolutely refuse to believe that there's going to be a strike," Lutz said Wednesday. "We're gonna work our way through it."

He added: "None of the three parties would benefit from a strike, not the UAW (United Auto Workers), not Delphi, not General Motors." GM, which owned Delphi until a 1999 spinoff, is the giant supplier's largest customer.

Lutz, speaking on the sidelines of the New York International Auto Show, faced a barrage of questions about the Detroit auto maker's ongoing struggles. In addition to expressing confidence that GM will avert a potentially crippling strike at Delphi, the industry veteran said GM is on the upswing and expressed vehement faith in GM Chief Executive Rick Wagoner. Wagoner has faced criticism for GM's continued market share declines under his watch.

Delphi, which is operating under Chapter 11 bankruptcy protection, has filed a motion asking a judge for permission to cancel its labor contracts. The approval process will take several weeks, and no action is expected until early to mid-June. Delphi, the UAW and GM are embroiled in three-way negotiations, as Delphi tries to slash labor costs.

Delphi's unions, most notably the UAW, have said a strike would be likely if Delphi receives approval and voids the contracts.

When asked if General Motors was stockpiling auto parts in anticipation of a Delphi strike, Lutz said the auto maker is "taking prudent planning measures as necessary."

Lutz also insisted that GM's much-touted turnaround is underway, and that oft-doubted chief executive Wagoner will keep his job despite mounting criticism.

"Rick Wagoner has this well under control," Lutz said. "He is without question the right man to lead General Motors. Read my lips, Rick will preside over the turnaround. Rick Wagoner will be the celebrated hero."

Lutz emphatically dismissed Wall Street speculation that the world's largest auto maker will be forced to file for Chapter 11 bankruptcy protection, weighed down by high labor and raw material costs and relentless competition from overseas auto makers.

"Imminent GM bankruptcy was always fiction, created by Wall Street and the media," Lutz said.

Article Source: http://www.smartmoney.com/bn/ON/inde...12-000958-1413

[GM-10]

that picture speaks volumes.

[VibenPontiac]

Originally Posted by Bob Lutz

"Imminent GM bankruptcy was always fiction, created by Wall Street and the media,"

About time someone called them out on this yet another example of the media creating news to report. Calling out the short sellers was great too. Take that a-holes!

Originally Posted by GM-10

that picture speaks volumes.

****************ing -a straight. ??

[cemaxc]

Thats a relief, for now. Let us wait until early to mid June and then we will see what happens. If my birthday present is the UAW going on strike, I will be Pi$$ed.

[Bvonscott]

Ya! Stick It To Em Lutz!!!

[SSrevolution]

This is a living example of how the media bias.

[GM-10]

I love hearing GM beat the war drums...Let's give 'em hell!!!

[Motownr]

Lutz is a product guy to the core....but his track record in the area of finance is a bit less solid....anyone remember the fate of his previous employer?

Exide ambushed investors shortly after he assumed the helm as CEO, and augered into Chapter 11 not too long thereafter.

Wall Street hasn't downgraded GM and Ford because they hate them....the financials are atrocious.....each company can easily wind up in Chapter.

Anyone selling anything else has an agenda to push.

[GM_Guy81]

Its just refreshing to hear someone stand up to the media/wallstreet types and display some confidence!

[cfch3399]

Thank you!

Originally Posted by Ming

"Imminent GM bankruptcy was always fiction, created by Wall Street and the media," Lutz said.

[mbukukanyau]

Originally Posted by GM-10

I love hearing GM beat the war drums...Let's give 'em hell!!!

problem is, they rarely fire shots, let alone cry bloody

[Laffer98]

Executives at General Motors Corp. (GM) don't believe Delphi Corp. (DPHIQ) workers will strike, said Robert Lutz.

UAW employee's "know" they will strike "if they have too".

[DU Biggs]

Originally Posted by GM_Guy81

Its just refreshing to hear someone stand up to the media/wallstreet types and display some confidence!

Very true. Since when did Americans take gossip like this sitting down? Im glad to see GM actively defending thier reputation and future.

[GM-10]

Originally Posted by Motownr

Lutz is a product guy to the core....but his track record in the area of finance is a bit less solid....anyone remember the fate of his previous employer?

Exide ambushed investors shortly after he assumed the helm as CEO, and augered into Chapter 11 not too long thereafter.

Wall Street hasn't downgraded GM and Ford because they hate them....the financials are atrocious.....each company can easily wind up in Chapter.

Anyone selling anything else has an agenda to push.

Tuck off!

[GM-10]

Originally Posted by mbukukanyau

problem is, they rarely fire shots, let alone cry bloody

Tuck off!