47,600 Take GM and Delphi Buyouts
June 26, 2006
Satellite Standard Group keeps you informed. Today GM announced that 35,000 of thier hourly workers have accepted the early buyout offered by the company. This represents about 1/3 of GM's hourly work force, and was greter than the number anticipated by the auto maker. GM has now reached their projected job cuts 2 years ahead of schedule.
Delphi, which in in bankruptcy, had also offered buyouts. 12,600 Delphi employees took an early buy-out deal as well. Because of the better than expected acceptance of the buyouts, a Delphi work stoppage, which had serious potential to harm GM, will likely be avoided.
General Motors has also announced that they have raised their guidance on the amount of money their company will save from $7 billion to $8 billion by the end of the year. Analysts see the news as positive but still maintain that there is work ahead for General Motors.
Getting this issue behind them will also enable GM to react more substantially to market conditions. With Chrysler contemplating an employee discount program similar to what GM did last year, GM is now better equipped to respond in kind. Until this was resolved, GM needed to build up inventory in the event there was a delphi work stoppage. Now that excess inventory is not likely needed. as a cushion.
This news should also be well received by XM Satellite Radio. The potential for a GM work stoppage due to Delphi seems to be behind them now. this means that GM production will continue as planned, and thus installs of satellite radios will not be impacted. XM is the exclusive satellite radio partrner to GM.
6/26/2006 09:32:00 PM
SSG Has Merged. You Can Read All Of The Latest SSG Content By Clicking Here
0 Comments:
SSG is not a Financial Advisor. Read Disclosure: HERE
--------------------------------------------------------
