Gaming Realms Regulatory News (GMR)

31 Mar 2006 15:46

GM Statement On Delphi Court Motions DETROIT, March 31 -- General Motors Corp. (NYSE: GM) today said it is disappointed with Delphi Corp.'s (DPHIQ) decision to seek authority to reject certain supply contracts with GM but it remains committed to working with Delphi and its unions to reach a consensual agreement. "We disagree with Delphi's approach but we anticipated that this step might be taken," said Rick Wagoner, GM chairman and chief executive officer. "GM expects Delphi to honor its public commitments to avoid any disruption to GM operations." Delphi's motion for authority to reject certain GM supply contracts, as well as the company's motion to reject its labor contracts, is consistent with past practices of other suppliers in Chapter 11. "Motions to reject labor agreements are fairly common in reorganization proceedings and we have seen this approach play out to agreed resolutions in other cases," Wagoner said. "GM will continue to work with Delphi, its unions and the court to achieve a consensual agreement that makes sense and is financially viable for all of the parties. We believe the special attrition program we agreed to with the UAW and Delphi last week is indicative of GM's commitment to reaching such an agreement." GM's objective in the Delphi reorganization remains to ensure that Delphi can continue as a viable important supplier to GM on terms that make sense for both GM and its stockholders.SOURCE General Motors Corporation 03/31/2006 P /NOTE TO EDITORS: For additional media information visit http://media.gm.com ./ /CONTACT: Jerry Dubrowski, +1-212-418-6261, Mobile: +1-917-544-4885, or Toni Simonetti, +1-212-418-6380, Mobile: +1-917-822-3392, both of General Motors Corporation/ /Web site: http://media.gm.com http://www.gm.com / (GM DPHIQ) ENDGENERAL MOTORS CORP