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Delphi: Tale of fear, fast money; GM warranty costs reverberate in federal fraud charges.(Delphi Corp. accused J.T. Battenberg III for accounting fraud, General Motors Corp.)
Crain's Detroit Business, November, 2006 by Barkholz, David
Byline: David Barkholz CRAIN NEWS SERVICE Barely 15 months after Delphi Corp. had been spun off from General Motors Corp., Delphi CEO J.T. Battenberg III faced a crisis that reverberates today in the government's accounting fraud case against Battenberg and several other Delphi officers. GM wanted $350 million to $800 million for warranty costs the automaker said it had absorbed because of allegedly faulty Delphi parts.
Battenberg viewed the claims not only as potentially damaging to newborn Delphi but patently unfair. Delphi had sold the parts to GM while it was still an operating division of the automaker, so the dispute should have been resolved as part of the spinoff in 1999. Delphi might have flagged the trouble to investors and fought the battle in...
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