AFSCME 3357-HOF'S BLOG

Trouble at Delphi

GM spin-off Delphi has had lots of trouble lately. There have been huge accounting adjustments, you know, the kind of stuff that you can't imagine a first year accountant would let through. One wonders whether Delphi is the next Enron. Now Delphi has suspended employee company stock purchases. Hmmm.


Delphi suspends employee company stock purchases - 03/14/05

Ponder this, if Delphi's credit rating plunges to the point that it can no longer operate as a going concern, Delphi plants might not be able to get the parts they need to keep running. Without the Delphi parts as part of the just-in-time inventory management system that has been implemented in many plants, assembly plants all over teh country may start going down one after another. GM would be hurt worse than others, but other automakers also use Delphi parts now.