Delphi Files for Bankruptcy
Saturday, October 8, 2005
By MICHAEL ELLIS
FREE PRESS BUSINESS WRITER
Delphi Corp., the nation’s largest automotive parts supplier and employer of 14,700 in Michigan, declared Chapter 11 bankruptcy Saturday after months of negotiations with General Motors Corp. and the UAW failed to produce a deal to stop the financially strapped company from bleeding money.
The bankruptcy, the largest ever in Michigan, will result in the closure, sale or consolidation of a "substantial segment" of Delphi's U.S. plants, threatening the livelihood of thousands of workers, while dealing another blow the to state's economy already struggling with a high unemployment rate.
And unfortunately, it's not just Delphi itself and GM which are hurt by this.
Hundreds, if not thousands, of smaller suppliers do business with Delphi’s U.S. plants, and they could see much of their work reduced or eliminated.
This will affect Michigan's entire economy. We need some business reforms here fast.