Delphi ready to file for bankruptcy

The network of companies that GM has is headed for some serious financial trouble. First, GM itself is facing several financial challenges of its own, but Jay argues that American automakers including GM are simply engaging in self-destruction. Then the restructuring at GMAC is not proceeding well either. It is likely that GMAC may be spunoff soon. Now comes the report that Delphi - a company that relies on GM for almost half of its sales - is headed for bankruptcy. Delphi is being hurt by the same things that GM is - huge so-called legacy costs that typically include healthcare benefits and pensions. While experts think that the US healthcare system is ready for a major overhaul driven by market forces, it is likely to sink a few companies before that happens.

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