PHILADELPHIA -- Delphi Corp. has hired restructuring adviser Rothschild Inc. as it grapples with federal probes into its accounting practices, shrinking sales at key customers and rising commodity costs, sources familiar with the situation said on Wednesday.
Rothschild declined to comment, and Delphi could not be reached immediately.
Delphi and other parts suppliers have been squeezed as General Motors and other auto giants try to cut costs in the face of competition from foreign rivals, surging costs for employee health care and raw materials to build vehicles.
Delphi previously said it has improperly accounted for cash payments to former parent GM. In March, Delphi warned it may restate results from the last six years, and its chief financial officer had resigned under pressure from its audit committee.
Troy, Mich.,-based Delphi faces probes by the FBI, U.S. Securities and Exchange Commission, and U.S. postal inspectors.
Delphi launched its own internal investigation into its accounting practices after receiving an SEC subpoena in July, 2004. The U.S. Justice Department advised Delphi of its own investigation in March of this year.
Separately, Delphi said it has been awarded two new electric power-steering contracts worth over $400 million over the length of the contracts, which average four years.