GM, Delphi in bailout talks as supplier draws down credit.(News)(Delphi Corp. might be taken over by General Motors Corp.)

Crain's Detroit Business, August, 2005 by Kosdrosky, Terry

Byline: Terry Kosdrosky, Robert Sherefkin The prescription for ailing auto supplier Delphi Corp. likely will involve General Motors Corp. clearing the way for thousands of Delphi employees to rejoin the automaker. If GM takes back 6,200 Delphi workers, the supplier could save $1.4 billion in annual labor costs since new hires at Delphi make about half the wages of current hourly workers, said Sean McAlinden, chief economist and vice president of the Center for Automotive Research.

GM, though it would have to spend "hundreds of millions'' to buy out its own employees, would benefit from lower parts prices from Delphi, he said. A deal is expected by the end of the year. Delphi President and COO Rodney O'Neal said last week the supplier could not continue to...

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