Delphi to close 14 plants

Dayton Daily News ^ | 3/31/06 | Mikey_1962

[Mikey_1962]

DETROIT | Bankrupt supplier Delphi Corp. has identified 14 U.S. factories it will shed as part of its reorganization in another sign of how bloody the restructuring of the nation's largest auto parts maker is turning out to be.

The Troy, Mich.-based parts maker — now with 28 U.S. plants and 33,000 hourly workers — intends to close all but four of 18 factories represented by the United Auto Workers after it emerges from bankruptcy, according to a UAW letter distributed this week to workers in Oak Creek, Wis.. Contents of the letter were confirmed by other local union officials briefed on the plans by UAW's top leadership.

Details of the company's downsizing plans are emerging as Delphi prepares to file a court motion today that will begin the process of undoing its union contracts. The motion could push the company's unions closer to a strike that could ravage both the supplier and General Motors Corp., its largest customer.

The UAW plants expected to survive — located in Grand Rapids; Kokomo, Ind.; and Rochester and Lockport, N.Y. — suggest Delphi sees a future in building automotive electronics and fuel systems in this country, but not spark plugs or catalytic converters.

The rest of the 18 UAW plants will be closed, consolidated or sold. But it is still unclear what would happen to its 10 non-UAW factories.

Workers at the Delphi plant at 3100 Needmore Road in Dayton are represented by the UAW. Workers at the other Dayton-area sites are not represented by the UAW.

Both the factory-closing plan and Delphi's move to overhaul its labor contracts are central to Delphi's goal of emerging from bankruptcy by next year. Delphi, which filed for bankruptcy in October, has made no secret of its intention to reduce it U.S. labor costs.

[mysterio]

Man, that's going to hit my neighboring community of Anderson, Indiana hard.

[Paul C. Jesup]

See post 20.