The Detroit Time Bomb! (IIPM-Press Release)

The now famously infamous Detroit Quicksand claimed its first victim in the form of Delphi Corporation, the largest US auto parts supplier, which depends on GM for 50% of its sales filed for bankruptcy on October 8, 2005. Delphi’s non-US subsidiaries are not part of the bankruptcy filing. Delphi listed $17.1 billion in assets and $22.2 billion in debts in the court filings. Its restructuring plans will be funded by $4.5 billion in debt facilities. Delphi’s woes are directly linked to its GM legacy. It was spun off from its parent company GM in 1999, but has been unable to shirk off the inheritance of costly health and pension plans.

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Source IIPM-Editorial,2006

Bernd Pischetsrieder gets a new lifeline

IIPM-News Release

Volkswagen CEO Bernd Pischetsrieder’s tenure has been given a fresh lease of life with an extension. The unanimous decision of the board furthers Pischetsrieder’s tenure to 2012. This decision came as a surprise, as his cost cutting measures had received severe criticism in Germany. Pischetsrieder is the mastermind behind a massive restructuring programme at Volkswagen’s six German plants in Wolfsburg, Hanover, Cassel, Braunschweig, Emden and Salzgitter, which could wave go o d- bye to roughly 20,000 jobs by 2009. But it is believed that the $408 million fourth quarter net profits gave an impetus to this decision.

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Source IIPM-Editorial,2006

The Indian Institute of Planning and Management, Press Release

Questioning ourselves over whether this storm has actually blown off the dirt created by the PSUs in the customers’ minds. Sadly, the research proves that the picture was indeed a little clearer, if not as murky as it was. RP Mohapatra of Delhi proclaims that the insurance companies are ‘day-light dacoits’. His anger, however, is very justified, for indeed he has reasons to crib.

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Source IIPM-Editorial,2006