Unconfigured Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

UAW to GM: 'We'll take medical cuts'

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • UAW to GM: 'We'll take medical cuts'

    General Motors Corp.'s United Auto Workers union members ratified a plan to help the world's largest automaker reduce its health-care costs and end four straight quarters of losses.

    Sixty-one percent of voting members approved the accord, the union said in a statement today. The agreement, announced Oct. 17, takes effect immediately for active workers and reduces the Detroit-based company's cash outlays for health care by $1 billion annually and its long-term retiree medical liability by $15 billion.

    GM Chief Executive Rick Wagoner made cuts in health-care costs his No. 1 goal this year, saying the tab puts his company at a $1,500-per-vehicle disadvantage against Toyota Motor Corp. and other rivals. GM shares rose 7.5 percent on news of the accord, the same day GM announced a $1.63 billion third-quarter loss. The shares fell 22 percent since then through yesterday amid news of debt downgrades and earnings restatements.

    ``At this point, the excitement surrounding what now look to be relatively small health-care concessions is but a distant memory,'' Rob Hinchliffe, an analyst with UBS Securities in New York, said in an interview.

    On Oct. 27, the automaker received subpoenas from the U.S. Securities and Exchange Commission concerning its reporting of pensions and other retiree benefits. GM's October U.S. auto sales dropped 26 percent. Moody's Investors Service and Fitch Ratings this month lowered their ratings on GM debt two levels further below investment grade.

    In addition, some UAW members at GM's biggest parts supplier and former subsidiary, Delphi Corp., have threatened to strike over that bankrupt company's demands for wage and benefit cuts. Two days ago, GM said it would restate 2001 earnings because of accounting errors. Yesterday, the stock traded at a 13-year low.
    link

  • #2
    GM will need these to pay for the latest round of incentives announced to begin today. GM Rebates Today.

    OH, BTW Jim,
    After the ride and drive this weekend, I think you'l really like the Caddy CTS-V. We compared this to the M3 BMW for performance and the CTS-V ROCKS!
    Edgy styling, comfortable with plenty of room for four, and real world class performance. Six Speed manual, 400 HP LS-2, ABS,nimble suspension. While it might be a little much to expect this car to go all day at the track, it is definately an enthusiasts car. Take one for a ride.
    ...Always follow the money

    Comment


    • #3
      I've considered one. As soon as they have a 400 hp version with awd and an auto, I'll look although I have a hunch my next car will be the new S-8, similar to what I have now with a Lamborghini V-10.......

      Oh, and as much as I admire the new Cads, I am really getting sick of the Led Zeppelin theme song in their ads. I hope they don't use it as long as Bob Seger's, 'Like a Rock.'

      Comment


      • #4
        IRLoyal, who/where do you work/do that you get to test cars !!

        Comment


        • #5
          Originally posted by irloyal
          I think you'l really like the Caddy CTS-V.
          But, you won't like the falls-like-a-rock depreciation compared to the BMW.

          Comment


          • #6
            I don't know about the sedans but I just got rid of an X-5 4.4 and took a pretty serious hit on depreciation.

            Comment


            • #7
              if healthcare itself wasnt so damn expensive.....

              now that companies arent going to pay for healthcare the cost will have to come down

              Comment


              • #8
                More news:

                Delphi, GM's former parts division, has been operating under bankruptcy protection and such a deal could reduce the auto supplier's payroll and help the transition to retirement for some of the 34,500 UAW workers, the Wall Street Journal said.

                Buyouts could also help reduce the threat of a strike and labor uncertainty stemming from Delphi's bankruptcy filing, according to the Journal.

                The outlines of any deal are still up for discussion, the paper said.

                Strikes at certain Delphi plants would only make matters worse for GM. The financially struggling automaker has lost about $3 billion this year as massive losses in North America continue to pile up and investors lose confidence.

                Under the 1999 spinoff of Delphi, GM agreed to guarantee the layoff benefits, pensions, retiree health care and life insurance of UAW-Delphi workers, though the extent of that guarantee is unclear, the paper said.

                Delphi, which filed for bankruptcy protection Oct. 8, is GM's largest auto parts supplier, selling it $15 billion a year in a variety of parts from steering systems to electronics.

                A GM spokeswoman did not comment on the talks, the paper said.
                link

                Comment


                • #9
                  Originally posted by The Beer Baron
                  if healthcare itself wasnt so damn expensive.....

                  now that companies arent going to pay for healthcare the cost will have to come down
                  Let's hope!
                  We flipped our finger to the King of England
                  Stole our country from the Indians
                  With god on our side and guns in our hands
                  We took it for our own!

                  Comment

                  Unconfigured Ad Widget

                  Collapse
                  Working...
                  X