General Motors stock rose yesterday to the tune of 92 cents (4.5-percent) amidst speculation that the company is close to forging a deal with the United Auto Workers and bankrupt supplier Delphi Corporation. However, word that a deal to aid the fallen Tier-1's hourly workers is near has been 'hotly denied' by the UAW. Check out the union's official denial on its website.
The automaker's obligations to Delphi have been one of the chief factors goading pundits and market analysts alike to speculate GM itself being pulled into bankruptcy. The General could be on the hook for a frightening $12 billion (insert Dr. Evil Pinky finger gesture here) in benefits to Delphi's employees.
GM and the UAW have been looking at alternatives, including offering perhaps 30,000 Delphi workers buyouts of $100,000 each ($3 billion). The company is on record as having $20.5 billion in cash available as of December, 2005, and the sale of most of the company's interest in Suzuki adds a couple o' billion to the coffers as well.
[Sources: Associated Press via Bismark Tribune and CNNMoney.com]
The automaker's obligations to Delphi have been one of the chief factors goading pundits and market analysts alike to speculate GM itself being pulled into bankruptcy. The General could be on the hook for a frightening $12 billion (insert Dr. Evil Pinky finger gesture here) in benefits to Delphi's employees.
GM and the UAW have been looking at alternatives, including offering perhaps 30,000 Delphi workers buyouts of $100,000 each ($3 billion). The company is on record as having $20.5 billion in cash available as of December, 2005, and the sale of most of the company's interest in Suzuki adds a couple o' billion to the coffers as well.
[Sources: Associated Press via Bismark Tribune and CNNMoney.com]
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