GM Statement On Delphi Court Motions
DETROIT, March 31 -- General Motors Corp. (NYSE: GM) today said it is
disappointed with Delphi Corp.'s (DPHIQ) decision to seek authority to reject
certain supply contracts with GM but it remains committed to working with
Delphi and its unions to reach a consensual agreement.
"We disagree with Delphi's approach but we anticipated that this step
might be taken," said Rick Wagoner, GM chairman and chief executive officer.
"GM expects Delphi to honor its public commitments to avoid any disruption to
GM operations."
Delphi's motion for authority to reject certain GM supply contracts, as
well as the company's motion to reject its labor contracts, is consistent with
past practices of other suppliers in Chapter 11.
"Motions to reject labor agreements are fairly common in reorganization
proceedings and we have seen this approach play out to agreed resolutions in
other cases," Wagoner said. "GM will continue to work with Delphi, its unions
and the court to achieve a consensual agreement that makes sense and is
financially viable for all of the parties. We believe the special attrition
program we agreed to with the UAW and Delphi last week is indicative of GM's
commitment to reaching such an agreement."
GM's objective in the Delphi reorganization remains to ensure that Delphi
can continue as a viable important supplier to GM on terms that make sense for
both GM and its stockholders.
SOURCE General Motors Corporation
-0- 03/31/2006 P
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