Auto parts supplier Delphi Corp. said it will ask a federal bankruptcy court on Friday to void its labor contracts as part of a controversial restructuring that calls for layoffs of up to 8,500 salaried workers and the sale or closure of 21 of its 29 U.S. plants.
The moves carry huge risks: It may lead to a strike by unionized workers at Delphi that could cripple the U.S. auto industry and push General Motors Corp., its former parent and largest customer, closer to Chapter 11 bankruptcy.
