Reply #11: Delphi CEO sees major job cuts: WSJ

[UpInArms]

http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2005-10-10T121649Z_01_ROB019180_RTRUKOC_0_US-AUTO-DELPHI.xml

NEW YORK (Reuters) - Delphi Corp. (DPH.N: Quote, Profile, Research), the U.S. auto-parts supplier that filed for Chapter 11 bankruptcy protection Saturday, plans to shut down or sell off a substantial part of its U.S. operations, the Wall Street Journal reported Monday.

But Delphi Chief Executive Robert "Steve" Miller told the Journal in an interview he was not sure if the company would ask the U.S. government to take over its pension obligations.

Miller said Delphi's troubles would require the company to divest, consolidate or close "a substantial segment" of its 45 manufacturing sites in the U.S. and Canada, which employ 49,000 workers.

He said he also plans to renegotiate the contracts and retirement plans of Delphi's 33,000 union workers and 12,000 retirees, the paper reported.

In its filing, Troy, Michigan-based Delphi did not detail which or how many U.S. plants it hopes to get rid of. The company previously identified 11 U.S. plants that were unprofitable and could be closed or sold.

The filing in bankruptcy court is the latest sign that the U.S. auto industry's unionized workers face painful restructuring efforts forced on airline and steel workers amid bankruptcies in those industries, the Journal said.

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