|
When you boil GM down, the auto business is a loser and finance is a
winner. Selling off finance to support auto would only compound a losing
strategy. What they must do is cut the nut in the auto unit until it's viable
which means a huge haircut on labor costs including health and pensions. The
practical way to preserve shareholder value would be to spin off finance and
take auto into a packaged bankruptcy ala United. One way or another, this is
inevitable should the US economy cool into a recession. By the same token,
taxpayers are going to be hit with huge costs in PBGC.
Earl
----- Original Message -----
Sent: Monday, May 23, 2005 8:50 AM
Subject: [RT] Disturbing headlines . . .
Yahoo! Groups Links
|