The road is never crowded on the extra mile. GM is finding out that it is getting lonely being the one US car company that the markets believe has a chance at a turnaround. Its stock is up sharply this year from a low of $18.33 to just below $33.
But, GM management is now publicly playing down expectations that its attempt to cut $9 billion is not as easy as some would have hoped.
A great deal of the concern about the GM attempt to get itself out of harm’s way is that the UAW negotiations with bankrupt parts company Delphi are still in progress. And, it they do not work out, the big union and Delphi have some legal recourse to back to GM on labor costs. Delphi was once a division of GM. Talks between the parts company and the union are currently not active.
And, of course, there is the upcoming negotiation between GM itself and the UAW. Those being this summer.
Perhaps tempering expectations is a good idea.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
Top Gaining Stocks
Top Losing Stocks