# Could Delphi Bankruptcy Impact XM?



## Nick (Apr 23, 2002)

Will Delphi's bankruptcy impact the nation's satellite radio
leader?

The financial woes facing the auto electronics and parts
giant, which has rocked the motor city and General Motors
(which spun off the unit in 1999), probably won't have much
effect on XM Satellite Radio, said Oppenheimer and Co. analyst
Tom Eagan. He said the Delphi Chapter 11 proceedings,
described as the largest industrial bankruptcy in history,
won't materially disrupt the manufacturing of XM radio units
or hinder the company's technical lead over satellite radio
rival Sirius.

"The XM stock has been down (last week) largely, we believe,
over concerns that Delphi's filing for bankruptcy may impact
the flow of XM radios manufactured by Delphi," said the
analyst.

Eagan said XM/Delphi radios are made overseas. "This is
important because it means manufacturing is not vulnerable to
a potential strike by Delphi UAW (United Auto Workers)
employees," he said. Delphi's unions may strike later this
year if management attempts to rescind its current labor
agreement, some have suggested.

Also, Eagan said XM's reliance on Delphi is declining. "XM's
wearables are manufactured by Pioneer and Tao. XM's MP3
devices will be manufactured by Samsung," he said. "We expect
XM will likely announce an additional MP3 vendor, a move that
would further reduce its reliance on Delphi."

Eagan said that MP3 vendor announcement could come today.

www.SkyReport.com - used with permission


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## pinkertonfloyd (Jun 5, 2002)

XM owns the chipset, and already has other partners. (IE this is why the XM2go is basically the same unit with a different case in all threee manufactures). XM can have/rebrand the units without any problem/harm.


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