Every move of a big man will always affect the small people involved. GM has not filed for bankruptcy protection yet. As its nine-nation (an umbilical tie) auto parts company, Delphi Corp. has been hit hard. At the end of March, Delphi Corporation was excited to announce that the brake system business had found the next home, Jingxi Heavy Industries in China, and the eight non-core businesses that had been prepared to sell had already found buyers. Delphi, which filed for bankruptcy protection in October 2005, has seen it possible to step out of bankruptcy before the April 7 bankruptcy protection deadline. Unexpectedly, General Motors, which had not yet fully fallen, let Delphi fall "in a fall." One of the eight businesses could not get so much money. The buyer is General Motors. GM said it agreed to increase its capital injection from US$300 million to US$450 million after completing the acquisition of Delphi’s steering equipment division. But GM can't be blamed for it, because it is the government's janitors who exercise their rights. At the request of the U.S. Department of the Treasury, the U.S. automotive industry group responsible for the reorganization of General Motors on Wednesday proposed to prevent GM from providing $150 million in additional funds to Delphi, and requested the U.S. bankruptcy court to provide the federal government with "General Motors and Delphi" by April 30. Company-related due diligence." This is Delphi's life-saving money, which relates to whether Delphi can get out of bankruptcy protection on April 7. Delphi said that if GM could not increase its pre-signed acquisition commitment to $450 million by April 7, according to the debtor-led credit line, Delphi’s $117 million cash collateral will be used on April 8th. Used to pay outstanding debt. Even more troubling is that if the U.S. government department agrees to pay $150 million more to General Motors, Delphi may reach a new loan agreement with its creditors before April 7, and its minimum statutory financing amount will return to US$100 million. Delphi’s cash problem will be To ease; otherwise it will fall to 25 million US dollars, will fall into the plight of insolvency. Originally planning to strip off eight non-core businesses, Delphi can take the opportunity to step out of bankruptcy protection and obtain rebirth. U.S. authorities are blocking the door, making Delphi’s rebirth road even more bumpy. How do you do? God knows, or the United States government to get it again to save Delphi company. If Delphi Corporation's lack of money causes its restructuring efforts over three years to go awry, it will affect not only Delphi Corporation's own life and death. Seriously speaking, the US automobile industry and even the global automotive industry will suffer. The bankruptcy of parts and components will come Delphi Corporation is one of the largest auto parts companies in the world. Many large auto companies purchase parts from Delphi. Delphi has a strong competitive edge in some high-tech auto parts. Once Delphi collapses, or if there is no money to temporarily stop production, the production process of many auto companies will be affected. (Even if Delphi's old customers buy alternatives from other parts companies, it won't be enough to buy enough quantities.) At first glance, Delphi simply lacked such a position. But in the end, Delphi's dilemma is just a microcosm of the global auto parts industry. A recent survey from Roland Berger International Management Consulting and Rothschild Investment Bank shows that in the past three months, the financial status of most auto companies has been struggling on the death line. The average income of auto companies has fallen by 20%. Forty percent, it is expected that the profit rate will reach a record low in 2009. After investigating 400 car suppliers, Roland Berger International Management Consulting found that car suppliers are facing an unprecedented crisis. From mid-November 2008 to the end of January 2009, 20 German suppliers closed down; over 300 suppliers in the North American Free Trade Zone, Europe and Japan currently have a precarious financial position. The average revenue of automotive suppliers fell by 20% to 40%; the bottom line of auto suppliers was 3% EBIT, but it is expected that the global supplier's profit margin will hit a record low in 2009, ie EBIT The rate will be reduced to about zero, which is far below the financial bottom line of automotive suppliers. Like most vehicle companies, most auto parts companies have a shortfall of cash flow, but in this market at the moment, who has the ability to earn money to support operations through capital market or operating income. What's more, credit insurance companies are withdrawing their insurance business, and companies can't manage their liquidity through factoring. Marcus Barrett, partner of the Automotive Industry Center at Roland Berger International Management Consulting Co., expressed worries: “If there is no significant increase in production in the second half of 2009, more auto suppliers will go bankrupt because they are unable to repay their debts. †Once the parts and components enterprises go bankrupt, even if the entire vehicle company encounters the blowout market, it will not be able to produce automobiles. After all, the entire vehicle company is more like an assembly company. After owning some core technologies or components, it purchases auto parts from various parts of the world and then companies, then assembles them into cars, and finally sells them globally. If money is the blood of a company's operations, parts and components are the bones or meridians of the car. If there are no parts, it will not be able to build up the "building blocks" of the vehicle. Hopefully, Delphi will not really fall into an abyss, and hopefully the U.S. government will begin to pay attention to the survival of auto parts companies. Road Sprinkler,High Pressure Water Sprinkler Truck,Road Sprinkler Truck Water,Road Spray Sprinkler Jiangsu Minnuo Group Co.,Ltd , https://www.jsminnuomachinery.com