Delphi Strike Would Put Toyota In A Bind

[Guest Josh]

Conventional wisdom has it that an imploding GM-UAW-Delphi triangle would force Delphi to cut its U.S. business with GM, push General Motors Corp. closer to bankruptcy and gut the union's future.

Less conventional is the reality that Delphi Corp. and its United Auto Workers-represented plants also stand to lose growing numbers of contracts with the world's would-be largest automaker, Toyota Motor Corp., if it gets pinched by UAW strikes.

And Delphi knows it.

Chairman Robert S. "Steve" Miller and President Rodney O'Neal were in Japan last week to reassure executives of Toyota, Honda, Nissan and Suzuki -- companies Delphi figures could account for as much as $5 billion, or 25 percent, of its expected $20 billion annual revenue by 2010.

A key question from Toyota's honchos: Can you emerge from bankruptcy, a competitive labor deal in hand, without a nasty strike that hurts us and accomplishes, well, nothing?

A bad tactic

The message from Delphi's brass: A strike isn't in our interest, the UAW's or GM's. And a prolonged confrontation, if it happens next year, shouldn't shut down lines supplying Japanese operations in North America because the UAW has avoided inflicting that kind of collateral damage in past strikes.

Or so Delphi hopes, because such a disruption could imperil Delphi's post-bankrupcty strategy and years spent courting a Japanese juggernaut mostly financed by the dollars of American consumers.

Only the willfully ignorant could fail to see that a relationship with Toyota is worth nurturing. Next year, it expects to produce 9.06 million cars and trucks worldwide, likely surpassing GM. Its production in North America continues to grow. And its yen for building long-term business ties spells stability for major suppliers like Delphi who need it.

Full Read: http://detnews.com/apps/pbcs.dll/article?A...380/1148/AUTO01

[Newbiewar]

wait... Toyota uses Delphi as well?

[Clownzilla]

wait...

Toyota uses Delphi as well?

[post="61915"]<{POST_SNAPBACK}>[/post]

They probably supply several auto companies. I remember seeing a commercial stating how they supply Masserati with A\C componets. Anyway, the article states that the UAW
won't strike to cause collateral damage, but when GM packs up and moves production out of the USA, who will the UAW have to strike to get a sweet deal then. Hmm.........Well, Toyota might not be in the crosshairs now, but they will be in the same danger GM is in now with possible supply disruption. Then Toyota packs up and goes out of the USA, and then the UAW will have to strike..............who?

[Ghost Dog]

They probably supply several auto companies. I remember seeing a commercial stating how they supply Masserati with A\C componets. Anyway, the article states that the UAW
won't strike to cause collateral damage, but when GM packs up and moves production out of the USA, who will the UAW have to strike to get a sweet deal then. Hmm.........Well, Toyota might not be in the crosshairs now, but they will be in the same danger GM is in now with possible supply disruption. Then Toyota packs up and goes out of the USA, and then the UAW will have to strike..............who?

[post="62095"]<{POST_SNAPBACK}>[/post]

Protectionism is coming like a frieght train. Its left the station.

http://www.caltradereport.com/eWebPages/fr...1134016573.html Edited December 21, 2005 by Ghost Dog