Feb 14, 2007

Delphi Blames American Workers

Quoted from an AP article by Tom Krisher, “Delphi Loses $2B in Third Quarter Due to Cost of Paying About 20,000 Workers to Leave Company”

In the first nine months of 2006 Delphi lost $4.6 billion attributed $2.9 billion of the loss to costs associated with the work force reduction. The parts supplier plans to close or sell 21 of its 29 U.S. plants and has moved most of the lost U.S. production to lower cost labor markets.

As previously posted in: This Ain't Your Daddy’s Oldsmobile, Delphi needs to have some of their production near their primary customer, GM, and has replaced nearly 40% of their U.S. workers with lower wage workers.