Economic Development Futures Journal

Sunday, October 16, 2005

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Latest on Delphi Automotive

Auto supplier Delphi Corp., which filed for bankruptcy protection this past week, expects to close plants as part of its restructuring, and while the company hasn't said which plants are on the chopping block, some are at more risk than others.

Delphi already has shifted 11 unprofitable plants in Alabama, Georgia, Indiana, Kansas, Michigan, Mississippi and Ohio into their own division, called the Automotive Holdings Group. Plants in that 3-year-old unit have historically been consolidated, sold or closed. Delphi has 44 U.S. plants, although not all of them are producing parts now.

Delphi also has said it wants to focus on high-tech parts such as satellite radios, safety systems and fuel-efficient engines in its U.S. plants and make low-profit, labor-intensive parts elsewhere. That could be good news for plants like the one in Kokomo, Ind., which makes complex products like the electronics that control air bags, but bad news for the workers making spark plugs and oil filters in Flint.

Check out the Delphi website for more information.

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