By Leftlane Staff
Wednesday, Feb 15th, 2006 @ 4:59 pm

Bankrupt auto parts supplier Delphi has threatened to ask the courts to void its contracts with the United Auto Workers union if it cannot reach an agreement by Friday lower to labor costs. Analysts worry a strike at the company — General Motors’ largest supplier — could have a massive impact on GM, reports Automotive News. “A work stoppage that shuts down GM’s North American operations would result in cash burn of around $5 billion per month,” JP Morgan analyst Himanshu Patel wrote in a research note. “The working capital outflow could begin to diminish after the first month, but GM’s desire/ability to sustain a strike beyond a month seems low.”

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