Unintended Consequences

After 4 years, Delphi (the parts maker for GM) is out of bankruptcy.

Before you get a thrill running up your leg, basically the deal is that GM is taking back its domestic parts plants (which were spun off from GM around 20 years ago), and the non-US plants are being given to the debtholders for what Delphi owed them (about $3 Billion)

During GM’s spiral downward, they had plowed about $12.5 billion into Delphi to try to keep it alive – without Delphi parts, there are no GM cars.

So our Government Motors car company lurches forward. What will be very interesting is the next time the UAW’s contract is up and the “workers” end up negotiating with their own union leadership “management” – with the U.S. taxpayers footing the bills for the next time GM fails.