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Delphi may be the world's largest maker of car parts, but that's just a hobby.(The Week ...)(Brief Article)

National Review

| November 07, 2005 | COPYRIGHT 2005 National Review, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Delphi may be the world's largest maker of car parts, but that's just a hobby. Its balance sheet looks more like that of a pension fund and a health-insurance provider. Delphi's unions have negotiated such generous benefits for their aged that a worker who makes $25 an hour costs the company $65 an hour once he retires. Delphi's pension obligations alone are estimated at $8.5 billion, roughly $4.3 billion of which is unfunded. It is not surprising that this cost structure has driven Delphi into Chapter 11 bankruptcy, and it will not be surprising if others follow: GM is thought to have unfunded pension obligations totaling some $31 ...

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