<VV> Delphi costs

[John Kepler]

>
> This is where "creative accounting" comes into play.

Not really.....it's actually where modern business reality kicks in!

Pension Costs should
> *never* be included in a burdened rate. These are to be separately funded
> and not to be included in overhead.

Why don't you ask Michael Milkin, Warren Buffett, and/or Sid Kravis just how
attractive a fully-loaded Pension Fund made a company for a "leveraged
buyout" back in the 80's!  Do remember that the "Little General" was on the
Board of GM in that era and was looking at it's Pension Fund like a wolf
watches a sheep!

When a company starts playing with
> pension funds such as using them to bolster stock prices, someone used to
> go to jail.

Fat pension funds make a company a take-over target, which is why most firms
converted them from a bank account into a box of IOU's (use the entire
Social Security system as your model!) and crafted cost-prohibitive
debt-production instruments as "poison pills".

No, what's going to happen to Delphi is likely to be exactly what happened
to steel firms like LTV and Bethlehem if the UAW doesn't "play ball" and
fast.  Those firms are currently making steel, making money with a more
productive, lower-cost Non-Union work-force, and foreign-ownership (Mittal)
after going into Chapt. 13 liquidation for a couple of hours!  It won't be
"Delphi" anymore, and a lot of unfortunate folks are going to be shoved off
the UAW-driven Gravy Train....but it'll be viable and profitable, which is
impossible under the current conditions.  Business reality in the Global
Economy of the 21st Century Mr. Padgett....I have to live with it, I don't
necessary like it!

John
>
> Padgett
>
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