According to insiders, General Motors and Delphi Corp. are in talks where the automaker will take back a half-dozen U.S. plants from the parts supplier and its former subsidiary. Sources say that the move is one of the many options GM plans to show Congress it can be viable in the long-term. Of course, by now all of you know that GM will be headed to Congress on Feb. 17, along with Chrysler LLC to submit a viability plan. Will they fly first-class or take one of their plug-in hybrid vehicles is yet to be revealed.
Delphi is planning to have no more than eight U.S. plants operating by the end of 2009. The parts supplier is seeking up to $2 billion from GM for five pants plants. GM feels it should pay less or nothing according to its previous agreement.
Spokesmen from Delphi and GM have both confirmed that the two parties are in discussion but declined to reveal any further details at this point.
Earlier this morning, GM announced that it will be cutting 10,000 salaried workers and will cut executive base salary by 10 percent by May 1.
Source: Detroit News