Delphi was created in 1999 as a spin-off from General Motors. Why doesn GM take back the pension plans?
Since Delphi entered bankruptcy protection in 2005, the PBGC has worked with Delphi, GM and other stakeholders to keep all the pension plans ongoing or to have them assumed by GM. In 2008, GM did assume responsibility for a portion of the Delphi hourly pension plan, and was expected to take back the entire hourly plan. However, GM itself reorganized in bankruptcy earlier this year and now states it is unable to afford the additional financial burden of the Delphi pensions.
