« Why be a long term bear? The deck is stacked against you. | Main | Weighing recessionary fears vs. anticipating rate cuts »

Sep26
UAW and GM reach tentative agreement to end strike

General Motors Corporation (NYSE:GM) and the UAW union reached a tentative agreement this morning that will end the nationwide strike that began just two days ago. Just as I pointed on Monday, this strike was more of last-minute gm.jpgnegotiating ploy than anything else, and the expectations of a short strike certainly did come true. The contract is said to put the responsibility for retirees healthcare into the UAW's hands, and certain jobs were also guaranteed by GM. GM shares are jumping by 4.74% on the news, and are leading the Dow higher today.

I believe that all sides understood just how huge the stakes are right now. GM simply cannot afford to have a long strike hurting its revenue and market share. GM competitors such as Toyota Motor Corporation (NYSE:TM) and Honda Motor Company (NYSE:HMC) have been taking market share from the company, and would have certainly hurt GM badly if they had a prolonged strike.

Major auto suppliers are trading higher on the news of the agreement today. Visteon Corporation (NYSE:VC) is higher by 3.14%. Johnson Controls Inc. (NYSE:JCI) is higher by 1.33% so far today. American Axle & and Manufacturing Holdings (NYSE:AXL) is receiving the largest boost today since it is so highly levered to GM, gaining 6.66%.

I believe that this was a situation where everyone involved understood it simply wasn't helpful to them to have a prolonged strike. The UAW wouldn't have benefited from a long holdout, and the GM Corporation as a whole would have been hurt significantly.


1 Comments/Trackbacks




» Stocks rally on GM news and Bear Stearns speculation from GrowYourFunds
This market recap will be shorter than GrowYourFunds RSS Feed Subscribers are accustomed to seeing from me, but I will be traveling tonight so my time is limited. The Dow rallied by nearly 100 points today, finishing up by 99.50... [Read More]

submit a trackback

TrackBack URL for this entry:

post a comment

Name, Email Address, and URL are not required fields.





Comment Preview

« Why be a long term bear? The deck is stacked against you. | Main | Weighing recessionary fears vs. anticipating rate cuts »

Advertise

Related Resources

recent comments

    sponsored ads



    subscribe


    Prefer Email?
    Subscribe below-

    Enter your Email:


    Powered by FeedBlitz What's this?

    Current News

    Support This Blog

    blogroll


    business social media

    Use these fast growing business social media sites to promote your business, feature your products, spotlight your business leaders, create links, and drive traffic back to your company site, all for free!

    BIZZlogos - Add your logo - free link to your site
    BIZZphotos - Add photos of your products and people
    BIZZprofiles - Submit your profile and build your online visibility
    BIZZspotlight - Spotlight your business with free links
    BIZZvideos - Videos about businesses, products and business people.
    BIZZbites - "Digg" for Business - Submit your articles and posts

    Know More Media - Finance / Banking / Insurance

    know more media network

    View Network Map

    Network Feed List (OPML)

    Know More Media Network
    Feed


    we support unitus

    PRWeb

    Influencer



    GrowYourFunds is a member of the Know More Media network of business related blogs.

    Here are some current headlines from some of our business publications:

    ProductivityGoal

    CallCenterScript

    AdHurl

    TheBizofKnowledge

    LandingTheDeal

    CustomersAreAlways

    HealthCareVox

    BrainBasedBusiness

    TheInsurancePolicy

    MarketingBlurb