Delphi, of Troy, Mich., said it is taking the actions because it expects vehicle sales to fall in 2002 due to the economy and expected end of 0 percent finance incentives.
The world's largest auto supplier expects its sales in 2002 to total $25.5 billion, a 2.3 percent decline from expected 2001 sales of $26.1 billion, CFO Alan Dawes said Monday, Dec. 10. Delphi expects its net income for 2002 to be $275 million, up from about $220 million this year. But Delphi will take a $404 million charge for restructuring costs this year, and another $100 million to $150 million for restructuring next year.
The supplier said it has been working to fix or sell three business units:
The supplier said it also either will temporarily or permanently close the equivalent of one of its North American battery manufacturing plants by the end of the third quarter of 2002.
Delphi also plans to consolidate its Western European operations. As many as 12 plants there initially will be affected, and more may be included in 2002.
The supplier in March announced a restructuring plan, which involved closing nine plants, consolidating operations at about 40 other plants and eliminating 11,500 jobs. These actions will be complete by the end of the first quarter of 2002, said Dawes.
The supplier expects its non-GM sales to account for 36 percent of its 2002 sales. That compares with 2001, when non-GM sales accounted for 32 percent of Delphi's sales.