By Nick Aziz
Tuesday, May 16th, 2006 @ 2:37 pm

The United Auto Workers this afternoon voted to authorize a strike if bankrupt auto parts supplier Delphi gets permission from the courts to toss out its labor contracts. Delphi was formerly a part of GM, and is still a critical supplier. A strike by Delphi workers, could cripple GM and other U.S. automakers, causing them to lose billions and even halt production, analysts say. Judge Robert Drain is expected to make a final ruling on whether Delphi can cancel its contracts in mid-June, if an agreement is not made before then. “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 in February. “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.�

  

LeftLane

Login

  • LeftLane

    Copyright © 2005 - 2012 Left lane News.
    All rights reserved.