AFSCME 3357-HOF'S BLOG

Delphi posts $5 Billion Loss for 2006

Delphi just posted the results of its first complete year under bankruptcy protection. The net result was a $5 Billion loss. From public posture, it's hard to distinguish Delphi in Feb. 2006 from Feb. 2007. The company is still talking about extensions and canceling its Union Labor contracts. In the meantime, customers have had a year to find alternate suppliers. Companies supplying parts and services to Delphi have taken losses and tightened terms.

As I write this, General Motors has not yet published its end of the year 2006 results, but executives have predicted a modest profit. I wonder then, if GM didn't absorb the brunt of the $5 billion Delphi loss, who did? And how much more loss are the poor buggers willing to take?


Indianapolis Loses its Last Black Car Dealer

Last week the mortgage lender for Payton Wells Chevrolet filed for foreclosure, and the dealership suddenly closed. With the closure, Indianapolis lost the last of three black-owned new car dealerships. Are black dealers the canaries in the coal mine? The major automakers have/had an affirmative action program to encourage African-American businesspersons to open franchised car dealerships. From time to time these programs have been criticized on various grounds, including allegations that the minority dealers were getting unfavorable locations and vehicle deliveries. It is likely that second-choice locations mixed with undercapitalization has hurt minority-owned car dealerships disproportionately in the current downturn in the domestic car industry.

From personal experience, I can say that it's a real shame that the Payton Wells dealerships are closing. I bought a car from Payton Wells Lincoln Mercury several years ago, and I received top notch service. In my several contacts with Payton Wells Chevrolet, I came off with favorable impressions as well. I wish Mr. Wells good luck in his next enterprise.