General Motors prepares for problems in Delphi

General Motors prepares for problems in Delphi

General Motors is the world’ largest automobile manufacturer. However, the company is finding it hard to compete against the Japanese companies, which have managed to lure the users to buy their reliable and fuel efficient vehicles. The result is that GM is suffering heavy losses on their auto sales and worse, their major component supplier Delphi is now in troubles too.

The company had to increase their vehicle production in the month of October despite the fact that they reported a massive drop in sales of cars. Market analysts believe that this is just a smart move to counter any potential strike at the Delphi’s plants. The company has officially stated that their supplies from their suppliers are fluent and without issues.

GM has also been assured by Delphi that their shipments will continue as during the restructuring at the company. GM representative Stefan Weinmann said in a statement: “Clearly our preference and our focus is making sure nothing changes from that. At the same time, I think it’s very prudent to look at contingency plans.”

General Motors is also planning to run at least 10 of its plants on overtime next week.

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