Analysts left cold by GM's cutbacks
Ailing automaker's stock falls a 2nd day after analyst issues rare 'sell' advisory
Associated Press
NEW YORK -- General Motors Corp. received another dose of bad news Wednesday when Deutsche Bank advised shareholders to sell the stock because of continued uncertainty over the company's financial future.
Rod Lache, an analyst with Deutsche Bank, issued a rare "sell" rating and lowered his price target on GM shares to $17 from $22. The stock -- which fell 2.3 percent on Tuesday -- fell another 82 cents, or about 3.5 percent, to $21.99 on the New York Stock Exchange.
The world's largest automaker on Tuesday outlined a plan to cut white-collar pension and health-care expenses, slash its dividend and trim executive salaries as part of its latest bid to avert bankruptcy. However, the cuts did not get a strong endorsement from Wall Street analysts.
"We continue to be disappointed by the limited cash savings targeted by current restructuring efforts," Lache said in a report. "Our concerns go beyond the ongoing market share erosion, uncertainty over the GMAC sale, and uncertainty over (parts supplier) Delphi."
GM said the cut in its dividend alone will reduce its yearly cash payout by about $565 million. Cash savings from the health-care changes will grow to about $200 million within five years.
Lache said the latest round of cuts is seen as a way for GM to come back and ask union workers for more concessions. He said there also appears to "be an ever increasing probability of confrontation with the United Auto Workers."
The biggest threat to GM's stability still remains a union strike at Delphi, Bear Stearns analyst Peter Nesvold said in a report.
Negotiations involving the UAW, General Motors and Delphi appear to have made little progress on the restructuring of the parts maker. Delphi sought bankruptcy protection in the fall.
Analysts left cold by GM's cutbacks
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StupidCowboyTricks
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Analysts left cold by GM's cutbacks
Someone asked me why I swear so much. I said, "Just becuss.":)
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Accountable
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Analysts left cold by GM's cutbacks
StupidCowboyTricks wrote: Analysts left cold by GM's cutbacks
Ailing automaker's stock falls a 2nd day after analyst issues rare 'sell' advisory
Associated Press
NEW YORK -- General Motors Corp. received another dose of bad news Wednesday when Deutsche Bank advised shareholders to sell the stock because of continued uncertainty over the company's financial future.
Rod Lache, an analyst with Deutsche Bank, issued a rare "sell" rating and lowered his price target on GM shares to $17 from $22. The stock -- which fell 2.3 percent on Tuesday -- fell another 82 cents, or about 3.5 percent, to $21.99 on the New York Stock Exchange.
The world's largest automaker on Tuesday outlined a plan to cut white-collar pension and health-care expenses, slash its dividend and trim executive salaries as part of its latest bid to avert bankruptcy. However, the cuts did not get a strong endorsement from Wall Street analysts.
"We continue to be disappointed by the limited cash savings targeted by current restructuring efforts," Lache said in a report. "Our concerns go beyond the ongoing market share erosion, uncertainty over the GMAC sale, and uncertainty over (parts supplier) Delphi."
GM said the cut in its dividend alone will reduce its yearly cash payout by about $565 million. Cash savings from the health-care changes will grow to about $200 million within five years.
Lache said the latest round of cuts is seen as a way for GM to come back and ask union workers for more concessions. He said there also appears to "be an ever increasing probability of confrontation with the United Auto Workers."
The biggest threat to GM's stability still remains a union strike at Delphi, Bear Stearns analyst Peter Nesvold said in a report.
Negotiations involving the UAW, General Motors and Delphi appear to have made little progress on the restructuring of the parts maker. Delphi sought bankruptcy protection in the fall.
As one empire falls, another rises. Toyota is #2 and gaining. They have plants all over America, and their stock is rising fast. I own a GM truck. I own Toyota stock.
Hopefully money and ideas will come together to save the employees. Maybe a new industry? Hopefully the UAW will not be able to get involved. I'm afraid they would kill the golden gosling.
Ailing automaker's stock falls a 2nd day after analyst issues rare 'sell' advisory
Associated Press
NEW YORK -- General Motors Corp. received another dose of bad news Wednesday when Deutsche Bank advised shareholders to sell the stock because of continued uncertainty over the company's financial future.
Rod Lache, an analyst with Deutsche Bank, issued a rare "sell" rating and lowered his price target on GM shares to $17 from $22. The stock -- which fell 2.3 percent on Tuesday -- fell another 82 cents, or about 3.5 percent, to $21.99 on the New York Stock Exchange.
The world's largest automaker on Tuesday outlined a plan to cut white-collar pension and health-care expenses, slash its dividend and trim executive salaries as part of its latest bid to avert bankruptcy. However, the cuts did not get a strong endorsement from Wall Street analysts.
"We continue to be disappointed by the limited cash savings targeted by current restructuring efforts," Lache said in a report. "Our concerns go beyond the ongoing market share erosion, uncertainty over the GMAC sale, and uncertainty over (parts supplier) Delphi."
GM said the cut in its dividend alone will reduce its yearly cash payout by about $565 million. Cash savings from the health-care changes will grow to about $200 million within five years.
Lache said the latest round of cuts is seen as a way for GM to come back and ask union workers for more concessions. He said there also appears to "be an ever increasing probability of confrontation with the United Auto Workers."
The biggest threat to GM's stability still remains a union strike at Delphi, Bear Stearns analyst Peter Nesvold said in a report.
Negotiations involving the UAW, General Motors and Delphi appear to have made little progress on the restructuring of the parts maker. Delphi sought bankruptcy protection in the fall.
As one empire falls, another rises. Toyota is #2 and gaining. They have plants all over America, and their stock is rising fast. I own a GM truck. I own Toyota stock.
Hopefully money and ideas will come together to save the employees. Maybe a new industry? Hopefully the UAW will not be able to get involved. I'm afraid they would kill the golden gosling.
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StupidCowboyTricks
- Posts: 1899
- Joined: Thu Oct 27, 2005 3:51 pm
Analysts left cold by GM's cutbacks
FORD
THE TICKER MIDWEST BRIEFS
Buyouts offered in Ford layoffs
Tribune staff, wire reports
Published February 8, 2006
Ford Motor Co. is offering buyouts of $100,000 each to workers who lose their jobs to plant closures if they agree to give up all benefits except pensions. The severance option is among four proposed to workers as Ford moves ahead with its plan to close 14 plants by 2012, which will affect roughly 30,000 employees. Ford expects to achieve half of the job cuts through attrition. The four incentive options are intended to encourage the rest to leave voluntarily, Marty Mulloy, Ford's vice president of labor affairs, told the Detroit News. Other offers include a tuition reimbursement program, two early retirement programs and a preretirement leave program for those just short of the 30 years needed to retire.
THE TICKER MIDWEST BRIEFS
Buyouts offered in Ford layoffs
Tribune staff, wire reports
Published February 8, 2006
Ford Motor Co. is offering buyouts of $100,000 each to workers who lose their jobs to plant closures if they agree to give up all benefits except pensions. The severance option is among four proposed to workers as Ford moves ahead with its plan to close 14 plants by 2012, which will affect roughly 30,000 employees. Ford expects to achieve half of the job cuts through attrition. The four incentive options are intended to encourage the rest to leave voluntarily, Marty Mulloy, Ford's vice president of labor affairs, told the Detroit News. Other offers include a tuition reimbursement program, two early retirement programs and a preretirement leave program for those just short of the 30 years needed to retire.
Someone asked me why I swear so much. I said, "Just becuss.":)
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Accountable
- Posts: 24818
- Joined: Mon May 30, 2005 8:33 am
Analysts left cold by GM's cutbacks
Part of the union agreement requires GM to pay workers even if there's no work to do. All they have to do is either do community service or come to a designated place and sit around all day.
I'm reminded of stories of shipwreck victims. Everybody tries to get into the lifeboats but there's not enough. Somebody has to be sacrificed so some can live. If they try to save everybody, the lifeboat sinks and all go under.
I'm reminded of stories of shipwreck victims. Everybody tries to get into the lifeboats but there's not enough. Somebody has to be sacrificed so some can live. If they try to save everybody, the lifeboat sinks and all go under.