Delphi in Trouble |
ICMR HOME | Case Studies Collection
» Business Strategy Case Studies |
|||
EXCERPTS Contd...Agreement With UAWIn September 2003, UAW reached an agreement known as New UAW Delphi National Agreement with Delphi. The agreement, valid for the following four years, was quite similar to the one between UAW and GM reached in September 2003. Delphi and UAW decided on a series of actions to make Delphi more competitive and viable in the long run. As part of the GM-UAW deal, GM committed itself to giving UAW-represented Delphi facilities, business contracts worth nearly US$ 1 billion... Accounting Scandals Surface
Delphi Hires Steve MillerDelphi hired Robert S. "Steve" Miller (Miller) to replace Battenberg as Chairman and CEO from July 01, 2005. Miller, well known as turnaround specialist, had guided firms like Bethlehem Steel, Morrison-Knudson and Federal-Mogul through bankruptcy proceedings. Commenting on Delphi's situation, Miller said, "There is still a theoretical possibility of a (bankruptcy) filing..." The Final Efforts
Looking AheadIndustry analysts predicted a difficult ride for Delphi, UAW and GM in the near future. They felt that though Delphi had excellent technological capabilities, its excessive dependence on GM, management inefficiencies, labor costs and other macroeconomic factors had given the company severe problems. According to John Moavenzadeh, Executive Director of IMVP, "They had a great product, great technology, and they were doing well. But unfortunately, their sales to GM were low-margin to negative-margin sales... Exhibits
Exhibit I: Entities Included in the Petition
Case Studies Links:-
Case Studies,
Short Case Studies,
Simplified Case Studies. |