The recently reported agreement between General Motors and the United Auto Workers was announced just as GM's third-quarter losses were made public. As a result, good news outshone bad, GM's stock price rose over two bucks and media outlets sent out their customary missives suggesting the d tente would turn the company's financial frown upside-down. But before we start hurling confetti balls down on the peacemaking leaders' noggins, there are a few minor details to sort out. That is, whose wallets will supply the ducats to pay for health care cost savings concessions, to which UAW leadership agreed, and will the union rank and file approve the tentative agreement. Now that you mention it, how many billions will GM really save, anyway, and is it enough to save the company from the reaper? Robert Farago, in his latest Death Watch column, deconstructs the deal to find out.
GM Death Watch XXXVI: Wattsamatta U [The Truth About Cars]