The filing for Chapter 11 bankruptcy last Saturday by Delphi, the No. 1 U.S. car-parts supplier, is making waves, both in the stockmarkets and in the news columns. Stephen Roach had a whole GEF post devoted to the issue yesterday. This morning it is the turn of the FT, which has a (subscription only) piece that cites Delphi CEO Steve Miller to the effect that the pension liability conflicts which lie behind the bankruptcy are only a foretaste of ‘the intergenerational warfare’ that is to come:
“The bankruptcy of Delphi, a car parts maker employing 180,000 people worldwide, marked a “flash point” between the interests of current and former workers, its chief executive said on Monday.
Warning of “hard choices ahead”, Steve Miller, who previously managed US steel and airline bankruptcies, said the conflict offered a foretaste of an “inter-generational warfare” facing much of the industrialised world.“