GM News Roundup
GM is set to announce the sale of Hummer for $100-$200 million at some point today, marking the most anyone paid for one of those since Eliot Spitzer. As Zero Hedge reported, based on GM's optimistic cash burn projections, this will plug the hole...from 10-15 hours of operation. Regardless, the 3,000 jobs saved by the sale of the too big to fail gas guzzler will be very happy.
Also, in data that will provide more statistical joy for Marla, the Minneapolis Star reporting that GM will increase the number of dealers to close from 1,100 to 2,600. It is yet unclear when all the additional dealers will start seeing their termination notices. The adverse impact on income tax and employment readings for states that house the largest amount of dealers will likely have to be pre-spun by CNBC as yet another support pillar for the rally. Something tells me the 3,000 jobs saved by the Hummer white knight will, as always, be a drop in the bucket, compared to those lost by this, very likely to be litigated, initiative.
Lastly, the U.S. taxpayer will be providing up to $115,000 in incentive and severance payments for tenured GM workers, according to the Kansas City Star.
GM is offering $20,000 cash and a $25,000 car voucher to production workers who decide to retire with their benefits.
For skilled-trades workers, the cash portion of the retirement package is $45,000 with the same car voucher.
For those not eligible to retire, GM also is offering more cash to walk away and sever all ties with the company, along with the $25,000 car voucher.
Employees with less than 10 years could get $45,000. Those with at least 10 years but less than 20 are being offered $80,000. For those with 20 years or more, it’s $115,000.
Those with 28 or 29 years at GM are being offered a bridge to retirement, with the company providing a monthly gross wage of $2,850 or $2,900 until qualifying for retirement.
So much for those massive sacrifices undertaken by the UAW to make GM such a modern, streamlined company.