GM's CFO expects Delphi deal in 30 to 60 days
The word is out that General Motors' Chief Financial Officer Fritz Henderson told a meeting of investment analysts this week that he expects a deal with Delphi and the United Auto Workers within 30 to 60 days - a prediction that left some analysts shaking their heads, believing that Henderson is being overly optimistic given the complexity of the situation.Although saying that the bankruptcy court judge is strongly encouraging Delphi and the unions to reach a consensus agreement, a GM spokesperson stopped short of confirming Henderson's prediction of a settlement timeline.
Henderson is undoubtedly praying for a quick settlement to the Delphi mess, as the likely alternative - a messy strike that would shut down GM production - would blow the company's fragile recovery strategy out of the water.
[Source: Reuters]
Reader Comments (Page 1 of 1)
John Smith 5:21PM (5/12/2006)
Let's hope so. Then next year it will be GM and Ford's turn to tackle this intractable plague called the UAW. It must go away so that workers can have more stability and GM can be healthier.
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Robert Farago 6:57PM (5/12/2006)
Henderson's career just jumped the shark. Oh wait; he works for GM. Do I smell a promotion? New CEO perhaps?
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torcik 3:14AM (5/13/2006)
#1 Like the the UAW is the main cause.
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jamie 1:41PM (5/13/2006)
If Delphi gets Judge Drain to nullify the union contracts and the 3500 odd unprofitable contracts with GM, there will be a strike.
If the union strikes, then you can bet the board will have Rick's head on a silver platter.
Lutz, although the one of the best car guys in the business, does not have the schmaltz to effect a GM turnaround.
Hence the moneyman Fritz, who did just that in Europe, will take the helm of the sinking ship.
The board is not stupid and is hedging their bets with two fantastic moneyman to restructure the company. Rick's clock is ticking though.
Notwithstanding, a strike would be good for GM too. They could downsize and eliminate a lot of heavy burdens overnight (in bankruptcy court of course).
My money is still on Fritz cutting a deal with the union and Delphi though. GM can always buyout the 21 of 29 plants that Delphi wants to close, thus ending the debacle forthwith. They needed to do this at the beginning of negotiations with Delphi and the UAW, not now under duress of strikes, legal action and bankruptcy.
Ho-hum! Don't you just love the melodrama? It's the best soap opera on the net! Gas prices, war, scandals, payouts, bribes...you name it, it's got it. :)
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callie143 8:05PM (5/13/2006)
John Smith, aka #1... As usual you display your simple mind by thinking this is solely the UAW who is at fault. Work on the floor for a while. It is apparent the waste that goes on in management making decisions... something our wages have no control over. Delphi, and GM is in the position they are in because of poor decision making policies... not because of the UAW. If you were truely on the 'inside' you'd know that.
You folks tear me up. Everyone seems to know just what is going on with Delphi.. blaming the union, blaming wages. What you have heard in the media is what Delphi has wanted you to hear.
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