Delphi's chief executive maintains that his company's bankruptcy will likely damage most of the world's auto makers, especially its biggest customer General Motors. The CEO has encouraged auto unions to agree to work for a third of their old pay and benefits, offering this remedy as the only way that the company can afford to save its old pension plan. He has defended Delphi's decision to increase cash bonuses and extend severance packages to 18 months for top executives.
See "Delphi CEO offers warning, remedy", Reuters, CNN, October 10, 2005