Auto supplier Delphi Corp. has sought U.S. Bankruptcy Court permission to eliminate health care benefits for 15,000 salaried retirees. Most of them rely on Delphi for medical, dental and vision coverage.

 

The company said the in papers filed on Wednesday to US Bankruptcy Court it could save more than $70 million per year or $200 million through 2011 by cutting the salaried retiree health care programs. Also, cutting benefits would allow Delphi to reduce its balance sheet liabilities by $1.1 billion.

 

Delphi seeks to cut those benefits as soon as April 1. The company said it had intended to maintain health care benefits for white collar retirees, but could no longer maintain such discretionary programs.

 

The situation follows a rapid deterioration in United States auto sales including former parent General Motors Corp caused by the current economic situation.

 

United States auto sales plunged 18 percent to 13.2 million in 2008, according to most recent estimates and auto experts expect sales to plunge again in 2009.

 

Delphi said the company won’t modify or terminate existing medical and insurance benefits or active, salaried employees and their dependents prior to their retirement.

 

A decision of Delphi’s request is expected in Bankruptcy Court on February24th.