Re: Lack of National Health Care Helped Kill Delphi, is GM next?

The legacy firms with the grossly excessive legacy costs are based on a
obsolescent model, a private-sector version of paternalistic socialism
that worked only so long as the US consumer market was held captive and
the legacy firms had no competition.

Nobody worth anything would accept a return to that situation.

Ford is halving the number of suppliers, and you can count on many of
the suppliers' being located where they don't have the ludicrous union
dinosaur overpricing situation.

GM no doubt will do the same. Probably all the Big Three will wait
first to see what kind of shakeout among US suppliers is triggered by
Delphi's expected bankruptcy. New supplier arrangements will involve
some of the survivors.

GM and Ford itself are legacy firms with legacy costs rated at junk
status and with GM, in worse shape than Ford, the bankruptcy of Delphi
presents huge problems for it (GM), as not only is GM dependent on
Delphi for parts, but GM also has a ridiculous agreement that requires
it to take back overpriced surplus and redundant employees now that
Delphi is bankrupt.

Delphi's demands prior to bankruptcy were harsh, but simply constituted
a change from unreality to reality.

Delphi now joins Bethlehem Steel and other failed dinosaurs.

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Relevant Pages

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