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Transportation equipment industry

Court Hearings for Delphi Delayed, Major Automotive Announcements and Industry Developments

Strategic Insights

— 3 min read

Ongoing court hearings aimed at determining whether Delphi Corp. can reject its labor agreements and certain supply contracts with General Motors Corp. have been postponed. This delay comes as Delphi employees are nearing deadlines for buyout offers. In other automotive news, DaimlerChrysler AG has reduced its full-year profit forecast due to a projected $1.5 billion loss at Chrysler in the third quarter. Hyundai Motor Co. has named Jae Il Kim to oversee sales, production, and finance units in North America. Meanwhile, United Airlines and Expedia have forged a new contract, making the carrier's published fares and schedules available on Expedia's website for the next five years.

Key Takeaways:

  • The bankruptcy court hearings for Delphi Corp. have been delayed, potentially impacting the company's labor agreements and supply contracts with General Motors Corp.
  • DaimlerChrysler AG has reduced its full-year profit forecast due to a projected $1.5 billion loss at Chrysler in the third quarter, citing an expected operating profit of about 5 billion euros.
  • Hyundai Motor Co. has named Jae Il Kim to a new post overseeing sales, production, and finance units in North America, part of a broader effort to expand its presence in the region.
  • United Airlines and Expedia have signed a new contract, making the carrier's published fares and schedules available on Expedia's website for the next five years.
  • Seaboard Corp. and PIC USA have agreed to pay $445,000 in fines for violating federal environmental laws related to animal waste disposal at some of their farms in Oklahoma.
  • Pinnacle Entertainment Inc. has purchased a 35-acre tract in Baton Rouge, potentially paving the way for the city's third riverboat casino.
  • A former Enron executive, Timothy DeSpain, has been sentenced to four years' probation and fined $10,000 for lying to credit-rating agencies about the company's financial health.
  • The former Federal Communications Commission Chairman, Michael Powell, claims he never saw a study that suggested greater media ownership concentration would hurt local TV news coverage.
  • Levi Strauss & Co. has announced plans to discontinue its discount clothing brand in Europe, citing diminishing demand and a need to focus on more profitable brands like Levi's and Dockers.
  • Tower Records has won bankruptcy court approval for a "stalking horse" bid, opening the way for a Chapter 11 auction, with Great American Group's offer setting the floor price at 63% of the retail value of the inventory.
  • Ted Leonsis, AOL's vice chairman, is stepping down as an active manager to pursue other interests while remaining in an advisory role.
  • The U.S. House Energy and Commerce Committee has requested that HP Chairwoman Patricia Dunn and General Counsel Ann Baskins testify about the company's investigation into media leaks.
  • Hitachi has reduced its full-year profit forecast due to ballooning costs to repair nuclear reactors and slumping sales of certain products, expecting to lose 55 billion yen this year.
  • The city of Chicago has filed a preliminary application with the Federal Aviation Administration to lease its Midway Airport to a private contractor, potentially increasing revenue without raising taxes.

Statistics:

  • $1.5 billion: Projected loss at Chrysler in the third quarter, according to DaimlerChrysler AG's reduced profit forecast.
  • 5 billion euros: Expected operating profit for DaimlerChrysler AG this year.
  • 45,000: Number of layoffs expected at DaimlerChrysler AG due to Chrysler's projected loss.
  • $10,000: Fine for former Enron executive Timothy DeSpain for lying to credit-rating agencies.
  • $65 billion: Market value lost due to Enron's bankruptcy.
  • 35 acres: Size of the tract purchased by Pinnacle Entertainment Inc. in Baton Rouge, potentially for a new riverboat casino.
  • 12,600: Number of Delphi employees who have taken early retirement offers.
  • 63%: Floor price set by Great American Group's bid at the Tower Records auction.
  • $230 million: Estimated worth of Tower Records' inventory if Great American wins the auction.
  • 50 years: Age of Ted Leonsis, who is stepping down as AOL's vice chairman.
  • 55 billion yen: Expected loss for Hitachi this year due to ballooning costs to repair nuclear reactors and slumping sales.
  • 39.725%: Floor price set by Great American Group's bid at the Tower Records auction.

Sources:

  • "Delphi Corp. postpones court hearings." Bloomberg.
  • "DaimlerChrysler cuts profit forecast." Bloomberg.
  • "Hyundai Names New Head for North American Operations." Bloomberg.
  • "United Airlines, Expedia Sign 5-Year Contract." Bloomberg.
  • "Pig farmers settle environmental case." The Oklahoman.
  • "Pinnacle Entertainment Buys Baton Rouge Land for Casino Site." Bloomberg.
  • "Ex-Enron executive gets probation, fine." The Houston Chronicle.
  • "Former FCC Chairman Says He Never Saw Study on Media Ownership." Bloomberg.
  • "Levi Strauss & Co. to Discontinue Signature Brand in Europe." Bloomberg.
  • "Tower Records Auction Set for Oct. 5." Bloomberg.
  • "AOL Vice Chairman Steps Down Amid Other Interests." Bloomberg.
  • "HP Figures Asked to Testify Before Congressional Panel." Bloomberg.
  • "Hitachi Trims Profit Forecast; Expects 55 Billion Yen Loss." Bloomberg.
  • "Chicago Files for Permission to Lease Midway Airport." Bloomberg.
  • "Northwest Union Barred from Striking by Federal Judge." Bloomberg.

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