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Managing in Troubled Times Case Study
Case Title:
American Car-parts Firms' Growing Troubles: Delphi Leads the Way
Publication Year : 2005
Authors: Shalini, Sumit Kumar Chaudhuri
Industry: Auto-Parts Manufacturing
Region: USA
Case Code: TRT0053
Teaching Note: Not Available
Structured Assignment: Not Available
Abstract:
The world's largest auto parts maker, Delphi Corporation, announced in March 2005 that it had overstated its profits by $166 million and cash flows by $447 million over a period of six years since 1999. The accounting irregularities came to the fore at the time when Delphi was already mired in other problems related to an increase in commodity prices like steel, a decrease in production by Ford, DaimlerChrysler and GM, as well as increased competition from foreign players.
Pedagogical Objectives:
- To highlight the challenges faced by the US car-parts industry
- To discuss Delphi's problems and its future course of action under difficult business circumstances.
Keywords : Delphi; US car-parts industry; Autosuppliers; USA; Auto parts; Accounting; Outsourcing; Foreign auto parts suppliers; Managing in Troubled Times Case Study; Big Three; Ford; General Motors; Auto parts manufacturers; Steel price; Commodity price