The sudden and unprecedented decline in auto sales globally has resulted in our only customer GMNA to announce plant closures and plant stoppages. As a result of the decline in sales Delphi is forecasting utilization rates of between 50-75% in all of it’s compressor plants globally. Unfortunately our only customer in 2009 is GMNA and this has placed the Suzhou compressor plan in a very dangerous position.
To remain a viable business, Delphi Thermal Systems continues to review its cost structure and resources and identifies cost reductions and business strategy changes required to meet our commitments to our investors, support our business model, and allow Delphi Thermal Systems to become more competitive in the global marketplace.
“In response to decreasing customer volumes, Delphi will idle its Suzhou, China, compressor plant by March 1st 2009. Production is expected to restart when customer demand returns to normal volumes.”
“For 2009, the Delphi Suzhou compressor plant, in Suzhou, China, was expected to build 95% of its compressor production for export to North America. Given the current business conditions and slowdown of global vehicle sales, Delphi has decided to idle the Suzhou facility by March 1, 2009, with hopes of restarting the plant when customer production volumes increase. All employees are expected to be laid off.”
This type of decision never comes easy. We understand this will be extremely difficult for everyone. But we must do this in the face of the extreme and permanent financial requirements.
It’s important for each of us to recognize that this decision is not a reflection of the dedication or talent of the people. In fact I could not have asked for better performance for anyone. I am proud of the work we have done together and I know you all will go on to be even more successful in your future endeavors.
We are not finished yet, we have a reputation of perfection and excellence and we can choose how we want to be remembered. I need you to continue to focus on your work I need you to be strong, proud and confident. We owe this to ourselves and to each other.
Employees will be offered a severance package based on guidelines as established by the local government. Details will be discussed individually with affected employees.
我们会根据当地政府的政策法规支付员工的经济补偿。具体细节将与受影响的员工单独讨论。
This activity should be completed by March 1st 2009.