A Wall Street analyst says he's waiting to see what pans out for GM's future with looming cuts in labor Europe and the public's response to new models before changing his rating of GM stock from "hold" status. Stifel Nicolaus analyst James Albertine tells investors that GM is a leader in a multi-year auto industry restructuring and turnaround. He says he is waiting on news of whether GM's sales growth can keep up with the market in the U.S. before recommending whether to buy or sell the company's stock.
Ford announced on Tuesday, September 25th that they are planning to cut serveral hundred jobs from their operations in Germany, the U.K. and the rest of Europe. The problem stems from faltering profits. The company lost $404 million in the second quarter and expects to lose $1 billion there this year. The company is offering buyouts to salaried workers and is also cutting temporary salaried positions and even some outsourced services. A sales drop of about seven percent is likely the result of the region's economic crisis. The move is part of a larger restructuring of the money-losing region.
Canadian autoworkers voted to approve a newly negotiated contract with Ford Sunday, September 23rd. The union says 82 percent of it's Ford members approved the deal. There was no report of how many of the 4,500 workers at Ford cast ballots. The union leadership also reached agreement with GM last week and workers are expected to vote to approve that contract Wednesday or Thursday, September 26th or 27th. Talks continue with Chrysler and the union is looking to match deals reached at both Ford and GM. The new Ford contract cut wages for new hires and freezes pay for current workers. It also give workers a lump sum payment for ratifying the new contract.