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Iacocca Arrives At Chrysler As Bankruptcy Rumors Swirl; Time Travel Perfected
Former chairman Lee Iacocca gave a closed pep rally to Chrysler employees yesterday in Auburn Hills, once again sharing the stage with a K-car, a minivan...and rumors of Chrysler's imminent bankruptcy. While current CEO Bob Nardelli was praising Iacocca as "Chrysler's most dynamic leader" and "a great American," Chrysler spokesman David Elshoff was telling reporters that rumblings about a forthcoming bankruptcy filing by the automaker were "without merit." Presumably addressing the present state of the industry, Iacocca said, "We'll live through it. Don't panic. Things are going to be OK." To fix the current management problems, Iacocca suggested outfitting Nardelli with wire wheel covers and a vinyl landau roof, then sending him back into the boardroom and hoping everyone would think he was a totally new CEO. More »
industry news
Chrysler Plays Chicken with Parts Supplier, Parts Supplier Loses
Ah, the weird, weird world of supply chains, Motown business practices and secretive private equity maneuverings. Yesterday, Plastech Engineered Products Inc., Chrysler's main supplier of parts, filed for bankruptcy. Chrysler, owned by private-equity firm Cerberus Capital Management, sued to obtain the toolings necessary to create the parts, but as of today, that action hasn't been resolved. Meanwhile, Chrysler has given more than 10,000 workers a little time off (with more to come today). The Freep has the best take on this story, which has naturally encouraged speculation on the interwebs that Cerberus is attempting a decisive coup de grace, simultaneously whacking a supplier that had become a cash drain and giving itself an excuse for a brief production slowdown to clear some unsold inventory. The actual story might not be quite so dark, but it certainly doesn't look good for Plastech. More »
unique performance
Unique Performance Files for Bankruptcy
We sort of wish we hadn't called this, but AutoWeek is reporting that Unique Performance filed for Chapter 7 bankruptcy protection on November 12th, less than a week after being raided by the fuzz for title-washing and other crimes. This means the company has no plans to rebuild itself and, worse, owes between $1 and $100 million dollars with no listed assets! More »
Survivor: Ford Motor Company [Freep]
The bankruptcy bill for Delphi will top $200 million and may go as high as $300 million. [Detroit News]
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TVR in the Terlet?
Ooh 'eck. Things aren't looking so rosy in Blackpool right now. Blackpool Automotive, the arm of TVR which owns the factory where the sports cars are built has gone into receivership and no employees of the company are being allowed on the premises. According to a statement on TVR's site, "Our plans include appointing expert partners and outsourcing to more advanced facilities, which will ultimately mean a better product for everyone, both here in the domestic market and internationally." Does this mean we'll finally see Clarkson's long-dreamed-of TVR Spetsnaz? More »
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Breaking! Delphi Gets $3.4 Billion As A Little Something To Keep It Going Through The Show
Well, it looks as though the saga of whether auto parts supplier Delphi will drag the General underwater into the inky abyss is getting a bit of a reprieve today. That reprieve is coming to the tune of $3.4 billion in stock buybacks of the broke n' busted auto supplier from Appaloosa Management LP, Cerberus Capital Management LP, Harbringer Capital Partners Master Fund I (no LP!), Merrill Lynch and YouAndUs Securities, LLC. The five companies, in a show of throwing good money after bad, appear to be in support of the Delphi plan to re-emerge from bankruptcy during the second quarter of 2007 and you know, start paying back the money it owes to the banks currently providing a hot capital injection. More »
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Breaking! Collins & Aikman Submits Chapter 11 Bankruptcy Reorganization Plan
The once-beleaguered auto supplier and current stunner of automotive supplier industry critics, Collins & Aikman, released a gameplan for bankruptcy reorganization that should allow them a way out of its current Chapter 11 status. Although confirmation of the plan still is subject to a bunch of conditions — like entering into agreements with customers, modification of some labor-related obligations, resolution of ongoing government investigations, pulling a large rabbit out of a hat and of course...court approval — hey, at least it's a start. More »
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Breaking! Delphi Drops $2.6 Billion During The First Half Of 2006
Embattled auto supplier Delphi's released the first half numbers and — who would have guessed it — they're awash in red ink. Yup, they're drowning in it — losing $2.6 billion during the first half of the year. But just like Delphi's baby-daddy, General Motors, the majority of those losses are associated with its attrition program. That'd be the more than 12,000 hourly UAW and IUEW workers who've taken the early-retirement plan. But that only accounts for $1.9 billion of the loss. Delphi's well-heeled, well-salaried and well-bonused execs still need to explain why the bankrupt company lost $700 million with revenue only up $100 million or so from the $13.9 billion it made in the first half of 2005. More »
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Broke? GM Fires Multibillion-Dollar Claim Against Delphi
It's been a while and we hadn't heard from Delphi recently...we were wondering what those guys have been up to. We found out when late yesterday, broke-as-a-joke auto supplier Delphi said the General made a "multibillion-dollar" demand for payments. That's not so good for Delphi considering it's kinda been relying on GM's help to carry out its bankruptcy reorganization. It's also interesting... More »
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Breaking! Bankruptcy Judge Rewards Delphi Execs For Being Bankrupt
Somehow we don't think this is going to make things any easier during union negotiations. A federal bankruptcy court approved today a multi-million dollar bonus plan for Delphi senior executives. That's right — the court decided 467 executives of a bankrupt auto supplier needed bonuses — as long as they acheive earnings targets in the second half of the year. This is after they approved similar bonueses for the same executives for hitting performance goals in the first half of this year. Those bonuses were estimated at around $38 million. So — two questions. Is keeping your job when you've sent your company down the crapper no longer the incentive folks need, and where' the similar bonus plan for the blue-collar workers? Oh wait, Delphi's cut most of those jobs. By the way — anyone want to send us a copy of that list of 467 execs — just send it over to tips@jalopnik.com. More »
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Breaking...And Obvious! Unions Dislike Delphi Management Over Bonuses
The International Union of Electronic Workers-Communications Workers of America (
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Although until yesterday, they were months behind in releasing an annual or quarterly report — they're finally able to tell the world they're doing...a bit better. Despite reporting a $2.4 billion loss, and reporting a warning they may be forced to sell or liquidate assets if the supplier can't work through problems in the bankruptcy courts — it's still only half as bad as last year. We guess that means investors and employees who own stock should only be half as worried they'll never see a single dime. More »
Annual Report Rollback! Delphi Releases Numbers, Cuts Losses In Half
Although until yesterday, they were months behind in releasing an annual or quarterly report — they're finally able to tell the world they're doing...a bit better. Despite reporting a $2.4 billion loss, and reporting a warning they may be forced to sell or liquidate assets if the supplier can't work through problems in the bankruptcy courts — it's still only half as bad as last year. We guess that means investors and employees who own stock should only be half as worried they'll never see a single dime. More »
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Breaking! Delphi Judge Says "Meh!" To GM Request For Adjournment
Just as quickly as the motion was placed in front of U.S. Bankruptcy Judge Robert Drain...just as quickly it was smacked down — like some crazy judicial game of whack-a-mole. Well, those thoughts of Delphi and UAW leadership sitting around for a quick tea n' crumpets and coming to a equitable solution were fun, weren't they? More »
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GM's totally looking for the hug-out to make Pivens proud on this whole Delphi/UAW contract situation. Lawyers from the RenCen today have asked bankruptcy court judge Robert Drain to adjourn the hearings for 60 days to give Delphi and the UAW some time to try to come to an amicable resolution to the dispute over little stuff like pay and benefits and jobs. More »
Breaking! Poppa Bear Steps In For The Hug-Out; GM Asks Judge For 60-Day Adjournment In Delphi Proceedings
GM's totally looking for the hug-out to make Pivens proud on this whole Delphi/UAW contract situation. Lawyers from the RenCen today have asked bankruptcy court judge Robert Drain to adjourn the hearings for 60 days to give Delphi and the UAW some time to try to come to an amicable resolution to the dispute over little stuff like pay and benefits and jobs. More »
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GM Calls In The Wolf: AlixPartners Drops In To Clean Up Blood And Guts; Ward Off Bankruptcy
The Wolf: Strip. / Jules: All the way? / The Wolf: To your bare ass. / Vincent: Is this necessary? / The Wolf: You know what you guys look like? / Jules: What? / The Wolf: Like a couple of guys who just blew off somebody's head.More »
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Breaking! Twenty-One Delphi UAW Locals Vote To Authorize Strike -- Apocalypse Now? Soon?
Hoo-boy, this is totally no good thing — expected, yes — but still no good thing. Twenty-one UAW union locals voted by a 95% margin authorizing their leaders to call a strike if Delphi goes all unilateral, making changes to labor agreements without working with the UAW first. So what does this mean? Well, it means the ground war continues — because this doesn't mean a strike is certain, it just means the leadership can strike if they feel like it. Not like that makes us feel any less jittery for Delphi or GM. More »
