Delphi facing cutbacks
Wednesday, August 10, 2005, 10:21
Only radical cost reduction measures can save Delphi from bankruptcy, business daily Világgazdaság reported. The second largest US car part manufacturing company was once part of General Motors, but then applied for a USD1.8 billion loan for its reorganization, as a result of which Delphi's stock prices dropped by 15%. The company is considering major job-cuts and offering early retirement to employees. Delphi has interests in two Hungarian companies, the car air-conditioner part manufacturing Delphi-Calsonic Hungary Kft and the security device manufacturing Delphi Packard Hungary Kft. Delphi-Calsonic employs 460 people, had a USD 120 million revenue, and its earning before interest and taxes (EBIT) reached USD 9.8 million in 2004. Delphi Packard has over 1,400 employees, with revenue of Euro 158.7 million and EBIT of Euro 8.8 million.