UAW opposes Delphi plan to pay exec bonuses ($37.6 million)

Source: Detroit News staff, wire and Bloomberg News reports

WASHINGTON -- The United Auto Workers union says Delphi Corp.'s plan to pay up to $37.6 million in bonuses to top executives violates the terms of a labor settlement it reached with the company in June. The union asked the U.S. Bankruptcy Court in Manhattan to deny the auto-parts supplier's request to implement the bonus plan, saying the proposal is in "no way" consistent with a provision in the labor settlement that requires Delphi to ensure its executives "sacrifice financially for the reorganization in a manner equivalent to the sacrifices made by the UAW-represented employees," the union said.

Chrysler LLC pays more to help its parts makers

Chrysler LLC's new purchasing chief said the automaker has increased spending to support cash-strapped parts makers. Chrysler is paying higher prices for parts to some suppliers to help keep them out of bankruptcy, said the executive, Simon Boag. He didn't disclose how many parts makers the Auburn Hills-based company is helping. Suppliers that depend on money-losing U.S. automakers are being pinched because they can't pass rising raw-material costs onto their customers. At the same time, suppliers' revenue is dwindling because of production cuts.

Dura bondholders sue over stock-offering plan

Dura Automotive Systems Inc ., a bankrupt auto parts maker, was sued by bondholders seeking to force the company to include them in a stock-offering planned as part of its reorganization. Investors Thomas Kurak and Pattiann Kurak, of Minnesota, said in court papers that they own $81 million worth of 9 percent subordinated notes issued by Rochester Hills-based Dura. The company has said such bondholders will be paid nothing when it reorganizes and exits bankruptcy. Dura filed for bankruptcy in October.

Report: Pact won't solve all of Detroit 3 problems

WASHINGTON -- Standard & Poor's said in a new research report that a successful labor deal with the United Auto Workers won't solve all of the Detroit Three automakers problems -- and could cause liquidity problems in the short term. While a new contract would be "rewarding" to the companies, General Motors Corp . and Ford Motor Co. still need to make significant strides in other areas, such as product development, to maintain their market position, S&P auto analyst Efraim Levy said.

Detroit News staff, wire and Bloomberg News reports.

Read more: http://www.detnews.com/apps/pbcs.dll/article?AID=/20070921/AUTO01/709210323/1148

of course Delphi is going to squeeze every last tenth of a cent from the parts suppliers, but at least the execs will have a merry christmas