"GM is pleased to announce that it has reached a tentative agreement with the United Auto Workers, which was required to meet competitive costs benchmarks and the expectations of the U.S. and Federal governments for significant further reductions in the company's longer term liabilities.
The tentative agreement is a critical step forward toward ensuring GM’s future in the U.S.
Changes to the collective bargaining agreements are subject to ratification by UAW membership and approval by GM's board of directors. The tentative agreements are consistent with the conditions and disclosures made in GM's prospectus and supplements to the prospectus for the pending exchange offers to bondholders. The financial impact of the terms of the agreement are not expected to be materially different from the viability plan estimates included in the documents for the exchange offers. Details of the definitive terms of the tentative agreement are not expected to be publicly disclosed by GM until after member ratification is complete."
Some of you might have some flashbacks when reading this news, especially because the course of actions is basically the same as for Chrysler. To refresh your memory, Chrysler announced it has reached a tentative agreement with the CAW days before it has filed for bankruptcy in the United States so this might be a hint into how GM’s future might look like in its home country.
Nevertheless, there are still enough signs to make General Motors think about bankruptcy, with some US officials already claiming the government is currently preparing the company for Chapter 11. The filing is said to be confirmed next week so we are only days away until we’ll finally find out what happens with GM.
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