Progress seen in Delphi talks

FRANKFURT: Bankrupt US automotive supplier Delphi is making progress in talks on cost cuts with its US labour force and former parent General Motors, a senior Delphi official said on Tuesday.

Order bookings in Europe are also accelerating despite the fact that Delphi’s US operations filed the biggest bankruptcy in automotive history last October, said Volker Barth, president of Delphi Europe and vice- president of the group. “The progress we have made in the negotiations in the US is following expectations, maybe even above expectations many people had before,” Barth said on the sidelines of a trade fair.

“I am not (involved) in the details but I see things working out pretty well. Everybody at this point in time is voicing that things are progressing in the right direction. There are definitely more things to do, but confidence is pretty high.”

GM chief executive Rick Wagoner said last week the automaker had made “progress with all the constituents” in the talks and that he was optimistic about reaching a deal.

GM, Delphi and its unions are trying to negotiate a new labour contract to avoid a court ruling that could lead to a union strike. A court in August granted Delphi’s request to delay hearings until September 18 while talks go on.
“When you look at the progress of what is going on in the negotiations I think it was the right thing to do to not go into court and have a decision by the judge,” Mr Barth said.

“As much as those things continue to progress I think this will lead to a solution which we all desire, which is outside of the court,” he added, declining to speculate on when a deal might be clinched.

Delphi is seeking to shrink until it becomes profitable by selling or closing plants and cutting jobs.