Delphi losses mount

Delphi Corp., the largest auto-parts supplier operating in Chapter 11, widened its first-quarter net loss as charges, lower production from former parent General Motors Corp. and raw-material prices took a toll.

The company also said Monday it may make a $1.3 billion payment to its pension plan upon exiting Chapter 11 after shifting $1.5 billion in unfunded liabilities to GM, according to tentative agreements outlined in its quarterly statement with the Securities and Exchange Commission.

The report comes as Delphi's largest union, the United Auto Workers, prepares what it calls a final contract proposal to the company. Delphi has sought wage and benefit cuts for its hourly employees. Delphi said its performance "continues to reflect its uncompetitive U.S. cost structure."

The supplier reported a first-quarter net loss of $533 million, or 95 cents a share, compared with a loss of $363 million, or 65 cents a share, in the year-earlier period.

This year's net loss included $160 million in asset-impairment charges and $73 million in employee-termination benefits and other exit costs. More at Detroit News