By: (AP) Auto supplier Delphi Corp. said Wednesday it is investigating how a newspaper obtained a document about its restructuring plans and will consider taking legal action.
"We consider this a very serious breach, and we're conducting an internal investigation," Delphi spokeswoman Claudia Baucus said. "Legal action -- including referral to law enforcement authorities -- will be considered based on the findings of our internal review."
The document, which was obtained by The Detroit News, said Delphi is considering a plan to get rid of seven plants and seven technical centers as part of an overhaul of its electronics and safety unit.
Baucus wouldn't comment on the details of the document.
"Delphi is aware that a confidential draft document was distributed publicly without authorization," she said. "Because it's a draft, the information is incomplete and does not necessarily reflect current plans."
Delphi, one of the world's largest auto suppliers, has 50,600 U.S. and Canadian workers and 45 manufacturing plants in 16 states. The former General Motors Corp. subsidiary filed for bankruptcy protection Oct. 8, citing high labor costs.
The document says the plants targeted for phase-out are located in Flint; Kokomo, Ind.; Milwaukee; Vandalia, Ohio; Tucson, Ariz.; Ashimori, Japan; and Liverpool, England.
About 3,400 people work at the Flint East plant. Delphi stopped production at another facility in Flint last year.
The plan calls for reducing the number of technical centers to 16 by eliminating two technical centers in Germany and one each in Flint; Westfield, Ind.; England; Luxembourg; and Sweden.
The plan lists "product line potential exits" for ignition systems, air meters, antilock brakes, steering controllers, suspension components and instrumentation products.
The plan calls for Delphi to seek global dominance of auto electronics and safety markets and to pursue "aggressive cost reduction via product exits, site consolidation, and legacy labor cost reduction."
It says Delphi will seek to "execute ruthless portfolio management" by focusing on "more winners, more exits."
The Electronics & Safety unit accounts for $5.8 billion of Delphi's annual sales of about $28 billion.
The document lists Motorola Inc.'s automotive division as a target for acquisition.
A Wall Street Journal report Sept. 15 said cell-phone maker Motorola had hired J.P. Morgan Chase & Co. to pursue the possible sale of the 5,000-employee auto products unit. Motorola declined to comment at the time and declined to comment on any talks with Delphi.
Comments
No comments on this item Please log in to comment by clicking here