Will Delphi Cripple GM?
Will a Delphi strike take down GM?
Once upon a time, GM’s parts making branch split off and became Delphi. Today Delphi is the worlds largest auto parts maker. They sell parts to everyone including GM’s top foreign rival Toyota. Delphi is currently in bankruptcy and a possible strike is looming. Many have claimed that a Delphi strike would cripple GM and send the top North American auto maker into bankruptcy its self.
However, not everyone thinks this will happen. Jerry Flint, former Forbes senior editor, calls it a case of the media just playing up a negative story. We all now that bad news is more entertaining that good news.
He concedes that this may happen but is very unlikely. There are several factors that support him. A strike would not happen until mid to late summer. This gives Delphi and the auto makers time to store up parts for later. Also by this time GM’s peak production will be over.
On top of this, the United Auto Workers union does not want to destroy 100,000 GM jobs. A crippling strike at Delphi by their members could do that. And, as I mentioned earlier, Delphi supplies many automakers so this would not only affect GM. The union would have national pressure on them.
So, a Delphi strike would not be in GM’s best interests but if it happens that does not mean certain doom either.
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