Delphi Update: This is Nuts

Delphi, the bankrupt US car parts maker, is to ask General Motors (NYSE:GM) to guarantee $1bn of business a month in order to underpin its restructuring plan.

But the plan designed to allow Delphi to maintain its heavily underfunded pension fund looked questionable after GM said it was unlikely to promise fixed levels of business to its former subsidiary.

Steve Miller, Delphi chairman and chief executive, told the FT: "At this moment we are going to see if we can create a business plan that's robust enough to support recovery of our underfunded pension plan and therefore avoid termination [of the plan]."
"We need GM to assure us of a future revenue flow by not de-sourcing away from us."

Only one question: "Why didn't Delphi move to a sustainable business strategy five years ago when it had a chance?"

Read more here.