Senator Schumer suggests GM should buy Delphi plants
Wednesday, 06 May 2009
US Senator Mr Charles Schumer said that General Motors should be allowed to buy back some Delphi plants. He released a statement urging GM to repurchase all four US Delphi locations, including Rochester and Lockport. About 2,100 workers are employed at Delphi Thermal Systems in Lockport. Delphi spun off from GM as a separate parts company in 1999.
Mr Schumer said that "We are in a time when big decisions need to be made and decisive action needs to be taken. For the benefit of the community and the survival of the company, GM needs to reacquire these essential factories to preserve vital jobs and secure a supply chain for the future and Delphi needs to be a willing partner. I will continue to do whatever is necessary to see this purchase through, for the sake of Western New York, our state and our country’s auto industry."
For GM, Mr Schumer said that the deal would ensure a secure parts supply for vehicle production. For Delphi, it would bring job security to the Rochester and Lockport plants.
Mr Schumer urged Delphi and its creditors to negotiate with GM and be receptive to the company’s offers. He said that there is concern that the plants will close or drastically reduce their output if GM does not take them over, the senator said. The four plants are also seen as likely to be the first to become profitable again as the economy turns around.
Mr Schumer sent a letter to both Mr Frederick A Henderson GM president & CEO and Mr Rodney O’Neal Delphi president & CEO, encouraging the reunification of their companies. He said that he was greatly concerned that if Delphi fails to emerge from bankruptcy, the plants and thousands of jobs will be in danger. He said nearly 50,000 New Yorkers work at new-vehicle dealerships and more than 23,000 people work in parts manufacturing, not including the thousands of indirect jobs supported by the industry, such as those in steel, plastics or rubber.
Currently, GM, Delphi and other lenders are in discussions to restructure the troubled parts company and help Delphi emerge from Chapter 11 bankruptcy protection. Delphi has been in Chapter 11 since October 2005 and was forced to withdraw its reorganization plan in April after a group of investors pulled out of the deal.
(Sourced from www.tonawanda-news.com)
schaun mer mal