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Re: Delphi (...! stick a fork into it folks!)

If American corporations have their designs on Third World wages for

> American workers, they'll be looking at general strikes as are seen in > parts of Europe.

First Delphi....then GM....and then Ford in 2006..... Just WATCH AND SEE. Oh, all you GM and Delphi retirees had better get used to no health coverage or that nice monthly check in a short time also.

Here is a DIRECT Quote from the IF Newsletter 5 Months ago:

"You may not want to believe it but our economy has been in disintegration since 1989 and only one trick after another has salvaged it. Just look at the dollar. It is only reflecting the collapse of a once great economy. Soon the US dollar will cease to be the world's reserve currency. We have major corporations on the verge of bankruptcy, GM is a good example. As GM goes, so goes America and what is good for GM is good for America. Its debt will shortly be junk. Its supplier, Delphi, along with GM, is under investigation and will precede GM into bankruptcy. Potential retirees and pensioners are going to be in for a big surprise - l ike the loss of 65% to 75% of their pensions. GM has $50 billion in debt to refinance over the next 20 months. We do not believe the market can or will want to handle it. The market cannot even handle the Treasury refinancings. That means interest rates have to move, jeopardizing the future of the housing market and complicating and increasing the cost of debt service. There are many more complicating factors that are going to be moving into the forefront in the weeks and months ahead. Prepare yourself - it will be a difficult journey. "

(The above was written in June of 2005)

DELPHI USA IS DEAD - GET USED TO IT UAW BUNKIE !!

GMAC, General Motors Acceptance Corp., contributes about two-thirds of GM's profits. After three years of $5,000 rebates per car, which was double the sector average, car and truck sale growth is falling. GMAC's $260 billion debt is larger than all of that of the auto division combined. As you saw in the last issue, GM's euro bond issues are trading at a yield of over 11%, which is certainly junk quality. The money maker GMAC is faced with declining vehicle sales and has been a major investor in Fannie Mae and Freddie Mac mortgages, thus, as interest rates rise and home prices fall, paper quality will come into question and mortgage volume will dry up, especially in cash outs and home equity loans. GMAC is facing a double-edged sword. At GM the most profitable sales unit is the SUV and with today's gasoline prices, they will suffer. Sales overall for January and February were off 11% despite having lowered prices in February. As you can see, the market is simply saturated with vehicles. GM lost $2.6 billion in Europe last year via Vauxhall, Saab and Opel and is laying off 12,000 workers. Since 1980 the auto workforce has shrunk by 70% due to deliberate de-industrialization and, of course, thousands of smaller firms supplying the industry have been phased out with massive job losses.

In 2006, GM either will pay off or refinance $44.7 billion in debt and Ford has to do $37.1 billion or $174 billion in debt. Can the market handle that at junk levels or will they want too? That could be bonds with a 13-14% coupon. Will financial firms, such as GMAC continue the hobby of producing cars? We don't think so. Can you see how deadly offshore production, outsourcing and free trade and globalization has been for America? Our industrial heartland has been destroyed. Fundamentally both GM and GMAC are on a path to destruction as is Ford. Borrowing costs have just jumped from 7.5% to over 11%. Can they generate cash at these levels and still make a profit? Delphi, the GM parts spin off, is now embroiled in an Enron-type fraud scandal, which could indirectly reflect on GM. Delphi has already informed 4,000 of its salaried and retirees that it is ceasing to pay their health care plan. GM and Delphi layoffs are over 10,000. Suppliers are already at junk level and can only borrow from GMAC to stay in business. Ford's Visteon is in the same boat. The UAW is on a two-tier wage system to save money and avoid layoffs.

If all of that wasn't bad enough GM's pension fund is underfunded by $17 billion or is only funded to 80% of its obligations. This comes as George and the neocons push pension reform, better called, funding your plan. This is a debt bomb and Washington knows it. If reform passes Congress for the benefit of the Pension Benefit Guaranty Corp., many companies will achieve junk status. GM wants to split off GMAC hoping to save GMAC. If that happens this year it is guaranteed GM will go into bankruptcy. PBGC is already $23 billion in debt and can not absorb the obligations to GM's hundreds of thousands of pensioners. This is a disaster of major proportions. Plus, they'll lose GM's pension insurance premium payments. Even if GMAC is spun off we do not believe they will escape attachment by PBGC. It should have been spun off three years ago.

(Of course Delphi Mexico and Asia will still be in business. Delphi USA and it's retirees are going into bankruptcy. Enjoy the ride folks! Money is GOD)

Reply to
trvth speaks
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Funny how these 2 anonymous posters, who we have never heard from in these NG's prior to this message, send their messages through remailer software! When you try to trace these freaks, you get this message: "This message did not originate from the Sender address above. It was remailed automatically by anonymizing remailer software. Please report problems or inappropriate use to the remailer administrator at ." That tell us a lot about their intent.

I've read a lot about stock manipulation over the years and this is a typical method used when some jerk wants to short-sell company stock.

My advice is to ignor this thread completely, so we don't fall into their self-serving trap.

Reply to
StingRay

Nice try. If you don't like the message, discredit the messenger.

No matter who started it, the fact is that GM & Ford are about to go down the same road already blazed by the steel companies and airlines.

John

Reply to
John Horner

"There is none so blind, as he who will not see!" John, I don't have to discredit the messenger. He/she has already done a good job of that him/her self. But then, I wouldn't expect you to check the source of posts made for questionable purposes John. You obviously believe everything you read! A simple Google of "Nomen Nescio " reveals no less than 997 hit-and-run posts to NG's and sites around the world. See for yourself - and learn! Apology accepted John - if you're man enough. ;-)

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Reply to
StingRay

U.S. auto parts sector vulnerable to Delphi strike

Reuters / October 14, 2005

CHICAGO -- The U.S. auto parts sector faces potential supply shocks if hourly workers strike Delphi Corp., which is pursuing wage and benefit concessions from its unions, a key focus of its bankruptcy reorganization, an analyst said.

"It's a distinct possibility that a work action does take place somewhere through the course of this bankruptcy," Fitch Ratings managing director Mark Oline said.

Highlighting that possibility, Richard Shoemaker, the United Auto Workers official responsible for labor contract negotiations with Delphi, told Reuters on Thursday, Oct. 13, that a strike "certainly is one of the options that is available" to the union.

Delphi, which filed the biggest bankruptcy in U.S. automotive history Oct. 8 in New York, has said it wants to negotiate significant cost cuts with its unions and plans to submit written proposals to them next Friday.

However, Delphi also has told the U.S. Bankruptcy Court that it plans to begin the process of rejecting the agreements in mid-December if it cannot reach a deal with its unions that would significantly cut its U.S. manufacturing costs.

"We have not yet seen any supply disruptions, but it remains a key risk," Oline said. "That risk will only increase as we get closer to a date where Delphi, if unable to achieve a contract with a UAW, needs to impose a contract."

Delphi has about 50,600 employees in the United States, including 34,750 hourly workers, almost all represented by unions. Delphi had sought to negotiate wage and benefit cuts from the UAW to avoid bankruptcy, amid reports that suggested it sought cuts as deep as 63 percent.

"The extent of the wage and benefit reductions Delphi is seeking would be difficult for any union to swallow easily," Oline said, adding that Fitch is also keeping close watch on Delphi's plan for its pensions.

Smaller suppliers, which can be more vulnerable to cash flow interruptions than larger companies, may feel some pressure because of payment disruptions.

A missed customer payment could be a tipping point, but that has not happened so far with the bankruptcy cases of Collins & Aikman Corp. and Tower Automotive Inc. and appears unlikely in the Delphi case, said Neil De Koker, president of the Original Equipment Suppliers Association.

"I don't suspect there will be a rash (of bankruptcies), but there will be other Chapter 11s because the industry is still struggling," he added.

The vast majority of smaller suppliers probably have no more than a few percentage points of business with any one company and should weather the storm without having to file for bankruptcy themselves, De Koker said.

Collins & Aikman, which manufactures automotive interiors, filed for bankruptcy protection in May and Tower Automotive, an auto-body frames producer, filed for Chapter 11 in February.

Reply to
C. E. White

There's a LOT of truth to this post. I know it's hard for GM supporters to accept, but the company is in VERY serious trouble.

Reply to
Ron M.

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