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Auto parts maker Delphi Corp. monthly losses grow in September

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Delphi Corp.  filed a report showing that the auto-parts maker's monthly losses grew in September to US$673 million from $508 million in August.

The Troy, Mich.-based company is working to cut costs as it tries to emerge from Chapter 11 bankruptcy protection.

It reported $1.37 billion in revenue for the month and $2.05 billion in operating expenses. Of the total sales, $803 million came from General Motors Corp. and its affiliates. GM was Delphi's parent company until a 1999 spin-off. The automaker remains its biggest customer.

Delphi has suffered financially since its independence and was forced to file for bankruptcy protection in October of last year. Delphi and the rest of the industry suffered a sharp decline, with cost pressures stemming from uncompetitive labor costs, rising commodity prices and production cuts at U.S. automakers.

Since entering bankruptcy, Delphi filed motions to abandon its labour contracts and some supply contracts with GM. Instead of a court ruling, the company has reached agreements with its two largest unions on buyout programs, and is still negotiating over collective bargaining agreements for remaining workers. So far, about 20,000 production workers have accepted some form of the buyout offers.

In 2006 through the end of September, Delphi said it lost $4.38 billion on revenue of $13.24 billion with expenses totalling $17.59 billion.

The company last met with union representatives in an Oct. 19 status conference with Judge Robert Drain of the Southern District of New York. Delphi representatives also met with GM negotiators over the supply contracts.

The next closed-door meeting with the judge to discuss labour and contract issues is scheduled for Nov. 8.

In a separate matter, the Securities and Exchange Commission said on Monday that it had settled charges of accounting fraud against Delphi and six people who had been accused of trying to hide the poor conditions of the company's finances. The company will not face charges since it co-operated with investigators.

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Auto parts maker Delphi Corp. monthly losses grow in September
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