Latest Automotive News

Subscribe in a reader

Auto parts maker Delphi Corp. monthly losses grow in September

Email   small font medium font large font

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.

Receive the latest automotive news by email!

Enter your email address:

Related news
Delphi Corp. said Tuesday that its third-quarter net loss narrowed due to smaller expenses related to its reorganization under bankruptcy protection, but it continued to struggle against the effect of auto industry production ...
Auto-parts supplier Delphi Corp. reported Monday a net loss of US$231 million for November. The Troy, Mich., company, which filed for bankruptcy protection in 2005, said in a filing with the U.S. Securities ...
A U.S. federal court on Wednesday confirmed Dana Corp.'s Chapter 11 reorganization plan, paving the way for the auto-parts supplier to emerge from bankruptcy by the end of January. After more than two ...
Kia Motors Corp., South Korea's second-largest automaker, said Friday its third-quarter net loss widened from the year before on production losses due to labour unrest and a decline in sales. Kia Motors lost 55.1 ...
Unprecedented economic and credit market turmoil dramatically impacts auto industry and GM results Market volatility results in $1.5 billion in non-cash charges for commodity and currency hedging Company anticipates soft ...
TOKYO (AP) _ A key Japanese auto parts supplier partially resumed operation Monday, a week after a major earthquake ravaged its production line but top carmaker Toyota said it will keep its ...
September auto sales in the United States are expected to be weak due to a credit crunch, high gas prices and the troubled housing market, reflecting an overall slowdown for the year ...
Tokyo — TOYOTA MOTOR CORPORATION (TMC) announces its production, domestic sales and export results, including those for subsidiaries Daihatsu Motor Co., Ltd. and Hino Motors, Ltd., for September 2009 and for the first-half ...
For more than 7 decades, NAPA auto parts have been recognize as quality leaders among the automotive parts and repair industry. In addition to competitive values, high quality ...

Best Investment Newsletter

- 46% in 2008

- invest in the best performing US stocks only and sell them when the uptrend is over

- very easy to follow, simple buy/sell signals

- no need to have investing or trading experience

Find More Now!

Auto parts maker Delphi Corp. monthly losses grow in September
> © 2006-2017 except where otherwise noted