Business's Killer I.O.U.

摘要

With Car Sales Surpris-ingly strong, J. T. Bat-tenberg III, CEO of auto-parts maker Delphi Automotive, would like to expand his factories and hire some workers. But he can't. And it's not because his products aren't in demand―Delphi makes the DVD players and satellite radios that are becoming the next big things in cars. He first has to deal with an ugly blemish on his balance sheet―a $4.1 billion shortfall in Delphi's pension fund. Three years ago the pension plan was fully funded, but it cratered along with the stock market. To fill that hole, Battenberg is shoveling some $600 million a year―about half of Delphi's available cash―into the fund. "It's a huge millstone," he grumbles. "We are delaying our expansion plans because our board suddenly has half the amount of cash you would normally have."