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By Doug Cunningham

The Delphi bankruptcy is hitting Michigan hard. With 14,700 workers in the state, Delphi is a major player in Michigan’s economy. Gov. Jennifer Granholm strongly criticized Delphi for giving 21 top executives golden parachute severance packages just before demanding 63 percent pay cuts for workers. UAW President Ron Gettlefinger called that deal for top management a “disgusting spectacle”. Delphi has more than 155,000 employees worldwide and is based in Michigan. In bankruptcy court Delphi will be seeking to slash wages and to cut health and pension benefits, with an ultimate goal of closing U.S. plants and outsourcing more of the auto parts giant’s work to cheaper overseas labor markets. In coming weeks and months shockwaves from the Delphi bankruptcy, the largest in Michigan’s history, will continue to reverberate through the U.S. auto industry.

Thousands of workers face layoffs; thousands more will see their wages and benefits cut in half. And GM could face as much as $8 billion in liabilities from this bankruptcy.