Abstract

Delphi Corporation, former subsidiary of General Motors Corporation (GM) and the largest auto components manufacturer in the US filed for bankruptcy on October 08, 2005. The case gives a detailed account of the factors such as huge pension liabilities, slowdown in the US automobile industry and so on which contributed to Delphi's problems in the US market. The case talks about the reasons that made GM spin-off Delphi and puts forth the details of the spin-off. It also gives insights into Delphi's agreements with its workers union, the accounting scandals at Delphi and finally ends with analysts' views on the future of Delphi.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Problems of Delphi Corporation
• Spin-off from GM
• Labour unrest
• Slowdown in the US automobile industry.

Keywords

Delphi Corporation, Bankruptcy Filing, United Auto Workers, Spin-offs, Master Separation Agreement, Restructuring Program, Accounting Scandal