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Ray of Light: Bankrupt Delphi Wins Contract to Supply Ferrari

Date posted: 04-27-2006

MARANELLO, Italy — Delphi, the bankrupt U.S. auto parts supplier and former General Motors subsidiary, said it will supply components and systems for the new Ferrari 599 GTB Fiorano.

The big news is that the new $280,000 Ferrari, which replaces the 575M Maranello, will use Delphi's MagneRide suspension, which is featured on such premium GM products as the Cadillac STS and the Chevrolet Corvette.

Curiously, the high-performance STS-V and the Corvette Z06 do not use MagneRide, which employs shock absorbers filled with a controllable fluid to alter damping characteristics.

For the '07 Ferrari 599 GTB, Delphi also will supply the dual-zone climate control system, as well as the electrical/electronic system. Delphi said it has been supplying climate control technology to Ferrari since 1992, and is responsible for the climate control systems on all of Ferrari's current models.

What this means to you: A little piece of GM on the next Ferrari — and a great way for Delphi to focus on something positive.
 

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:agree:
 

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I think that is brilliant. But I also think that it won't ultimately solve GM's problems until Delphi ditches the unions OR GM goes overseas for parts.
 

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SCharger said:
I think that is brilliant. But I also think that it won't ultimately solve GM's problems until Delphi ditches the unions OR GM goes overseas for parts.
I think that the problem for Delphi is deeper than just union issues.:crazy:
They got caught just like Enron did playing the number game:rolleyes:
 

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jjwvette said:
I think that the problem for Delphi is deeper than just union issues.:crazy:
They got caught just like Enron did playing the number game:rolleyes:
You are correct Sir!!! Delphi was accustomed to being an in-house supplier to Big Daddy GM, and didn't know the business of being a supplier to an entire industry. It failed to "right size" at the beginning, and obviously didn't know how to bid profitably for the likes of Toyota, Nissan and other major assemblers. They just don't know how to get to the bottom line. Sometimes you have to pass on contracts that aren't profitable - duh.

Think Western Electric, who couldn't make it without Ma Bell.
 
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