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Tax Maneuver Criticized by Obama Helped U.S. Craft Delphi Rescue

Delphi Corp. headquarters in Troy, Michigan.

Delphi Corp. headquarters in Troy, Michigan.

Photographer: Gary Malerba/Bloomberg

President Barack Obama says U.S. corporations that adopt foreign addresses to avoid taxes are unpatriotic. His own administration helped one $20 billion American company do just that.

As part of the bailout of the auto industry in 2009, Obama’s Treasury Department authorized spending $1.7 billion of government funds to get a bankrupt Michigan parts-maker back on its feet -- as a British company. While executives continue to run Delphi Automotive Plc from a Detroit suburb, the paper headquarters in England potentially reduces the company’s U.S. tax bill by as much as $110 million a year.