Delphi is reported to be in a legal dispute with four of its own suppliers over a payment disagreement that has been turned over to a bankruptcy court.
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According to The Associated Press, citing Delphi spokeswoman Claudia Baucus, Delphi paid the four suppliers after they threatened to halt shipments, but those suppliers are not included on the company’s “essential supplier list”. Delphi claims the four suppliers cannot keep those payments because the company’s not allowed to pay non-essential suppliers while the court sorts out certain aspects of Delphi’s restructuring.
AP said the suppliers now must prove to the court the need to be included on the essential list, and it is unclear how they will react if the ruling isn’t in their favour.
The news agency noted that Delphi’s dispute with suppliers comes as the company faces threats within its own organization concerning production that could lead to hiccups in the sprawling US supply and vehicle-production chain – Ron Gettlefinger, president of the United Auto Workers union, said recently the UAW is negotiating terms with Delphi in an attempt to reach a fair labour agreement, but hasn’t ruled our a strike if a deal isn’t made.
A strike against Delphi, or a stoppage of parts deliveries by suppliers, threatens production of vehicles in North America, and General Motors, Delphi’s former parent and largest customer, stands to lose the most as nearly every significant vehicle it builds carries Delphi parts, The Associated Press added.
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