GM is prepared to offer financial assistance to helps its troubled and bankrupt supplier Delphi as it negotiates with its union according to Delphi CEO Robert ‘Steve’ Miller.
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“We are going to need some financial assistance from GM,” said Miller speaking at the World Automotive News World Congress in Dearborn, Michigan, reported by Reuters.
“And Rick has signalled he is going to be a participant,” Miller added, referring to GM’s chief executive, Rick Wagoner.
Miller said earlier this week that the company was in talks with the UAW and its former parent GM.
“Now that the three of us are together, and GM’s giving financial assistance…the tone of discussions have improved dramatically,” he also reportedly said.
Analysts say that whatever the moral issues surrounding GM’s responsibilities to Delphi, spun off from GM in 1998, it has a real self-interest in ensuring that the negotiations proceed smoothly and Delphi emerges from Chapter 11 in good shape.
Delphi had said earlier that failure to reach a deal with its union would force it to ask the court to reject current labour agreements which could result in a strike at Delphi, which would likely shut down a few plants and disrupt the supplies of components to GM, Delphi’s biggest customer.
