The implosion of the large-SUV market is being blamed for the wreckage that is the US's largest auto parts supplier, Delphi — which has become the largest auto industry firm in the nation to go bankrupt. Now, it's off to US Bankruptcy Court, where executives hope to be allowed to sell off assets, downsize operations, reduce the workforce, reset the pay of remaining workers up to 60% downward, and cut a pension liability Standard & Poor's estimates at $14.5 billion. The pension figure is also a Damaclesian sword swinging perilously above GM's cash reserves, considering the General is bound contractually to cover a portion of it if Delphi fails. It's bad. And it's bound to get worse as the ripples head outward from the center. Hang on. [Update: Check out TTAC's take.]
Delphi in bankruptcy [The Detroit News]
Staggering blow: Delphi's bankruptcy ominous sign for fading auto industry [The Detroit News]