GM hit 18 Year Low, to follow subsidiary Delphi bankrupt?

[SB076]

Originally Posted by 4.9 EF Futura

Very good point. GMH itself is reasonably profitable and a strong company - but would have to wonder what happens if can no longer source parts at mates rates from parent company...

Something similiar happened when TWR went into recievership I was told a lot of work was done behind the scenes so the HRT could continue racing (TWR owned HRT) - dont think it would be that same with GM and GHM as there would be far more complications.

Holden could source products from almost anyone to continue building there cars, ie Damiler Chrysler, Toyota, Mitsubishi etc yes it wouldnt be pretty but there would be alternatives to sourcing from GM but whethers is viable is another matter

[SB076]

Originally Posted by SSBUB

yes i doubt H standing alone....and i did say holden before so slap on the wrist for me!

Nah, we are all here to help you, dont worry we will have you driving a Ford soon ;)

[SSBUB]

gimme a bf xr6t any time!

[Dave_au]

Originally Posted by 4.9 EF Futura

but would have to wonder what happens if can no longer source parts at mates rates from parent company...

Sometimes long term supply contracts are better than internal transfer pricing/

[Falcon Freak]

Originally Posted by 4Vman

How typical of unions... its better to have the company go broke and everyone ends up unemployed and also risk the bankruptsy of their customer and its employee's than make concessions to keep people employed albiet at reduced salary's for a short period...

The local unions are threatening to do the same to the local automotive industry when the EBAs are due for renewel in 2006. I heard that they are already playing hardball with some component suppliers and are giving indications that will not back off from their wage claims. People in senior positions have told me that if the unions win next year that a lot of local component suppliers will simply begin to wind down their local manufacturing operations.

As to Delphi USA it is odds on that they will go on strike before Christmas. Which will make GM USA's situation worse. Holden seems to be protected from this to some extent as they have a lot of unsold vehicles which could cover any lost production.

Details about GM's cuts

'Interesting' times ahead.

FF