Dispute With Supplier Could Hurt Delphi

TROY, Mich. (AP) - A dispute with an Israeli maker of precision machine parts has threatened to hamper financially struggling Delphi Corp.'s ability to supply its No. 1 customer, General Motors Corp.

Deutsch Dagan Ltd., a private Ashkelon, Israel-based company with 145 employees, has been in a dispute with Delphi over the suburban Detroit-based auto supplier's payment for components it ordered before filing for bankruptcy.

The Israeli-made parts are used in air-conditioner compressors, Deutsch Dagan President Zvi Dagan told The Associated Press by telephone Wednesday.

Dagan said he learned that Delphi was paying other foreign suppliers but not his company. He said he spoke with Delphi, it agreed to pay, and the work continued uninterrupted.

"We want to continue doing business with Delphi," Dagan said.

Delphi said Monday that it would pay Deutsch Dagan the $207,078 that it seeks because it recognizes Deutsch Dagan is "financially distressed," on the condition that Deutsch Dagan proves to a U.S. bankruptcy court that it is an essential supplier to Delphi, the Detroit Free Press reported.

Delphi keeps a list of suppliers that are most important to its business. They are paid before other suppliers.

Delphi won an agreement Nov. 29 to force up to 11,000 suppliers to extend their contracts to supply parts. Delphi said its customers would face business disruptions if the contracts were not extended beyond the end of 2005.

Deutsch Dagan is scheduled to make its case to join Delphi's critical supplier list on Feb. 9 before U.S. Bankruptcy Judge Robert D. Drain in New York.

Dagan said that because his company is based in Israel and has no operations in the U.S., it should not be subject to a U.S. court order to continue supplying Delphi without payment.

Deutsch Dagan's other customers include General Motors Corp., Volkswagen AG, Detroit Diesel Corp., Newcor Inc. and Robert Bosch GmbH, according to its Web site.

Buickman is not going to like this.

Buickman is not going to like this.

shhh.... dont say his name, i think he uses the search button to find threads where he's talked about

I used to think some of us were a little hard on him, but lately I have come to believe he is not worth my concern.

For a much more interesting topic ... I like the idea of a section of the board for communication between sales people like yourself and potential coustomers. Here is a quick question. How many Cobalt and HHRs does your store carry in stock. To look in the local papers its all pick ups and trucks! I have always had a fasination with dealer stocking decessions. I used to have a friend who was a salesmanager for a small stand alone Peugeot dealer. Their franchise agreement demanded they cary one sedan and one wagon of each of the two models available. The less popular model wagon stayed on the floor all year.

I used to think some of us were a little hard on him, but lately I have come to believe he is not worth my concern.

For a much more interesting topic ... I like the idea of a section of the board for communication between sales people like yourself and potential coustomers.  Here is a quick question.  How many Cobalt and HHRs does your store carry in stock.  To look in the local papers its all pick ups and trucks! I have always had a fasination with dealer stocking decessions.  I used to have a friend who was a salesmanager for a small stand alone Peugeot dealer.  Their franchise agreement demanded they cary one sedan and one wagon of each of the two models available.  The less popular model wagon stayed on the floor all year.

last time i checked we have 1 hhr... usually doesnt last too long... we have about 10 cobalts, about 10 aveos, 3 malibus, 0 impalas, 1 monte carlo, about 15 equinoxes, 20 trail blazers, about 60 '06 tahoes, about 60 '07 tahoes, about 100 silverados, 4 suburbans... ohh 1 corvette...

thats sounds about like our inventory... we dont sell very many cars at all... we deal with mostly hispanic familys with the need to carry a lot of passengers