facebook
twitter
rss
account
search
search
 

Delphi Corp. files Chapter 11 bankruptcy

Oct. 8, 2005 at 4:39 PM   |   Comments

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.

© 2005 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Most Popular
1
Hershey's new logo launched, compared to emoji poop
2
Brazil Air Force, Saab discuss Gripen procurement deal
3
The 'Home of the Whopper' to keep headquarters in U.S.
4
Abercrombie & Fitch axes logos after years of declining sales and bad press
5
Canadian media must broadcast official emergency notifications
Trending News
Video
x
Feedback