Delphi in Trouble |
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EXCERPTSGM Spins Off DelphiIn the 1970s, many foreign automobile manufacturers, including several from Japan entered the US. Initially, they sold small, fuel efficient and low cost cars which were imported. Later some of them like Honda and Toyota established their manufacturing facilities in the country. The oil crisis in 1973 made US customers, who were using big cars, to shift to smaller Japanese cars which were more fuel efficient. Gradually, manufacturers such as Honda and Toyota started offering cars even in the luxury segment and started capturing the market share of American manufacturers like GM and Ford... Life After the Spin Off
The Problems BeginIn March 2001, Delphi announced a worldwide restructuring program to cope with the decrease in the number of vehicles manufactured. The restructuring included consolidations, sell-offs and closure of nine of its plants, and reduction of its workforce by 11,500 members at 40 plants. Out of these nine plants, three were located in the US. Under this restructuring program, Delphi sold of its non-performing businesses amounting to nearly US$ 900 million. Delphi laid off more than 4,000 temporary employees between December 2000...
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