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]