I must admit that I am totally confused by the so-called bankruptcy reorganizations at General Motors, Chrysler, and Delphi. New revelations surface on a daily basis, such as a new organization structure, wage and benefit concessions by the United Auto Workers, bondholder status, and other ramifications of the automotive industry bankruptcy filings. Following are some of my questions and concerns.

First is General Motors Corp. because it will be the most costly to the taxpayers of our country. Once a world financial powerhouse, General Motors, after 83 years, has now been de-listed by the New York Stock Exchange. The federal government now owns 72.5 percent of GM, the United Auto Workers 17.5 percent, and the bondholders 10 percent. The Wall Street Journal states that the takeover by the government, which basically socializes GM, will cost the taxpayers at least $70 billion.

The Obama administration thinks it can start selling shares of GM stock in a year to 18 months and will be completely out of the deal with GM within five years. Nothing is ever stated about sales levels and the obvious impact it has on financial results, either good or bad. What sales level is break even for the new GM? Shouldn't sales levels be a part off any equation addressing financial stability of a company? Sales levels are never discussed as a major part of the automakers meltdown, but it is the primary cause for all automakers' financial instability. GM will be broken up into "New GM" and the current company, called "Bad GM," which includes Pontiac, Saturn, Saab, and old plants. "New GM" will emerge from bankruptcy with total protection from their creditors while "Bad GM" will have to rid itself of assets that are unprofitable and will be in bankruptcy until all of those unprofitable assets are liquidated.

The labor agreement between GM and the United Auto Workers union is nothing like the public was led to believe. There was talk of parity with Honda, Toyota, and Hyundai in wages and benefits. Other than work rule changes, there are no reductions in pay and benefits for UAW active members, and the negotiated contract's length is two years. The UAW revised contract calls for a wage freeze, which the UAW calls a savings, and eliminates a non-existing bonus, which the UAW also calls a savings. It also revises job descriptions, which may or may not result in savings. If GM can survive under these conditions, then the agreement for no pay and benefit reductions for active UAW members is good, but if the government and the UAW have guessed wrong, they are only postponing the inevitable.

As to Chrysler, it gets even worse. First of all, Chrysler is being "sold" to a very weak European company. And if Fiat owns Chrysler, why are they only getting three seats on the board, with only one of those three seats being a Fiat employee? Fiat has been held up as a financially secure company. Fiat lost $430 million in the first quarter of 2009 and prospects for the second quarter aren't any better. Who in the government decided that Fiat is the savior of Chrysler?

After the approval of the Chrysler/Fiat merger on June 15, does Fiat begin sharing financial results with Chrysler? If not, why not? And if not, when and how are the financial results going to be merged? As Chrysler continues to burn cash, does this affect Fiat's bottom line? And with the UAW owning such a large part of Chrysler, how will this play out between the UAW and Fiat? Who really has control of the board, Fiat or the United Auto Workers?

It has been said that Chrysler is getting "billions of dollars in advanced technology and intellectual property." As I stated in a previous article, there are no secrets in the automotive industry. The industry knows how each company manufactures a vehicle and the industry knows everything about "advanced technology." The technology to produce a small car like the Fiat is not as demanding as the requirements for a larger car, such as a Cadillac. The bureaucrats who were demanding a merger with Fiat obviously knew nothing about the industry, consequently the forced merger with Fiat. Fiat brings nothing to the table!

As for Delphi, I thought I had a fairly good understanding of Delphi's situation, but GM now says it is going to provide $2 billion of bailout money to help a private equity firm, Parnassus Holdings LLC, buy Delphi. General Motors, in turn, will take an equity position in Delphi as it comes out of bankruptcy. The Indianapolis Star reported, "GM, which is currently under bankruptcy protection, will use a part of $30 billion in taxpayer funds it is receiving to help a California firm, Parnassus Holdings LLC, acquire the auto parts maker, Delphi." GM will also provide $750 million before and after bankruptcy credit to Delphi. Parnassus Holdings will operate Delphi's holdings in the United States and abroad. A spokesman for Parnassus holdings said the company has spent the last three years "learning the business and developing restructuring plans."

Really? Does anyone remember Cerberus, the private equity firm that bought Chrysler? Parnassus is going to run a company as complex as Delphi and without any hands-on experience?

I stated in a previous article that someone from Delphi Electronics & Safety should tell our community what is transpiring at Delphi Electronics & Safety. Upper management should be at every civic club, every public gathering, and in all the Kokomo newspapers explaining the ever-evolving saga at Delphi Electronics & Safety. The only news from Delphi Electronics & Safety is from the union. It is appreciated. However, the Kokomo community, which has strongly supported Delphi for many years, deserves comprehensive communications from the upper management at Delphi Electronics & Safety.

(Editor's note: John F. Floyd is a former Chrysler Complex manager and former vice president of Manufacturing and International Operations for General Tire and Rubber Co.)