Delphi Corp. files Chapter 11 bankruptcy

Oct. 8, 2005 at 4:39 PM

NEW YORK, Oct. 8 (UPI) -- Delphi Corp., General Motors Corp.'s largest auto parts supplier, filed to restructure its struggling U.S. operations under Chapter 11 Saturday.

The Troy, Mich.,-based supplier made the bankruptcy filing in New York. The filing covers 38 of the company's U.S. subsidiaries but none of its foreign operations, the Detroit News reported.

The supplier's board of board of directors met Saturday morning to approve the filing.

"We took this action because we are determined to achieve competitiveness for Delphi's core U.S. operations, and the key to accomplishing that goal is reducing costs as soon as possible," Delphi Chairman and Chief Executive Officer Robert Miller said in a statement.

Miller blamed high labor costs of $65 an hour including benefits inherited from General Motors Corp., for the filing. Delphi, was spun off by GM in 1999 and supplies half of GM's parts. GM's declining auto sales, also contributed to the bankruptcy filing, Miller said.

With $28 billion in annual sales and 185,000 employees worldwide, Delphi is the biggest U.S. auto company to file Chapter 11, the Times said.

Like Us on Facebook for more stories from UPI.com  
Latest Headlines
Top Stories
Compact cannon for British armored vehicles
Kraft-Heinz merger forms world's fifth-largest food-beverage company
Aetna to acquire Humana for $37 billion in cash, stocks
New Zealand military receives medium heavy military trucks
BBC to lay off 1,000 people to make up for $234M in lost revenue