GM introduces itself to Kokomo

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November 4, 2009

Company plans to maintain Delphi’s reputation of community involvement.

By K.O. Jackson The Kokomo Tribune Wed Nov 04, 2009, 11:11 PM EST

In the tradition Delphi set in Kokomo, General Motors Co. said it wants to continue its partnership and involvement in the community.

“We will continue to provide service to our customers and our community,” said Steven Hartwig, Kokomo’s plant manager. “We will continue to work with Delphi and the UAW in events and attend community meetings.”

Detroit-based GM, which regained control of Delphi as the two companies recently emerged from bankruptcy, took the opportunity during a conference call Tuesday to formally introduce itself to the City of Firsts.

Along with Hartwig and members of the media, GM’s general manager Bill Shaw spoke on the call to discuss changes for the new company.

As many of the changes are implemented, one thing that won’t change is the company’s community stewardship, Hartwig said. Delphi, which is Kokomo’s second largest employer, had been involved in local events, and Hartwig said the same will continue with GM.

That part of the Delphi image won’t be the only thing to linger.

The sign along U.S. 31 that declares Kokomo’s Delphi Electronics & Safety plant as the company’s “World Headquarters” will be replaced, but it’s not a top priority, according to Shaw.

“We will look into correct signage in the next few months, but it’s not money we are ready to spend now,” said Shaw. “As for other changes, our plants are always under construction or remodeling as we want to become leaner and be competitive as a global manufacturing system around the world.”

When Delphi emerged from bankruptcy last month, it did so with the assistance of its former parent, GM.

After GM exited its own bankruptcy, it used $2.8 billion of government bailout money to purchase part of its former parts division.

GM is dependent on the supplier for about 10 percent of parts that go into its North American vehicles. As a result, part of Delphi’s plan to emerge from Chapter 11 hinged on GM taking back some of the supplier’s businesses.

The plants include a Saginaw, Mich.-based steering business as well as facilities in Kokomo, Lockport and Rochester, N.Y., and Wyoming, Mich.

So now, all that can be seen from U.S. 31 is now GM property; home to 827 GM United Auto Workers and 336 salaried non-union employees. The space is being leased from Delphi.

Although Delphi Holdings LLP — the company’s new name since bankruptcy — will have a few engineers scattered throughout GM’s plant. Most of Delphi’s 1,400 employees are located in two buildings on Lincoln Road.

Unlike GM, Delphi is now a privately held company and doesn’t have to reveal financial information. Delphi’s product portfolio remains centered on electronics and safety, powertrain, thermal, electrical and electronic systems, OE service and the independent after-market.

According to Kent Eaton, GM human resource and personnel director, GM currently has 60 production workers and 90 skilled workers off the job. He said those workers would be the first called back for work when it becomes available.

“We have discussed this with the UAW,” said Eaton. “We do not have other plants to move employees to. Seniority is how they will be called back.”

As both companies are emerging from bankruptcy, Shaw said it’s “too early to say” if additional hiring will occur in Kokomo.

“We will have to adjust our hiring of manpower with what the market dictates,” said Shaw. “When the market picks up, we are prepared to adjust accordingly. We expect Delphi to treat us like any other customer of their products.”

• K.O. Jackson is the Kokomo Tribune’s business writer. He can be reached at (765) 854-6739 or via e-mail kirven.jackson@ kokomotribune.com

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