One of General Motors largest suppliers files for bankruptcy, Delphi filed Saturday.
The announcement comes just one day after boosting severance packages for 21 top executives. Some auto analysts say Delphi's bankruptcy could increase pressure to produce cheaper auto parts overseas and force cuts in wages and benefits.
GM says they do not expect the bankruptcy will have any immediate effect on its global automotive operations. Delphi has plants across Michigan including Adrian, Flint, Grand Rapids and Saginaw.
Company officials say they hope to emerge from bankruptcy in 2007.