General Motors shares are down fractionally this morning in the wake of yesterday's walkout by United Auto Workers (UAW). The union members got a boost from supportive comments by presidential candidate and current U.S. senator Barack Obama, with the Democrat from Illinois stating, The demands the union is fighting for job security, health benefits they were promised are things that all workers should expect and that UAW members deserve.
A report from Moody's Investor Services this morning suggests that GM has about 30 days' worth of cash to cushion itself during the strike; by contrast, the Detroit Free Press notes that the UAW's strike fund totals $800 million, a year's supply. Over at 24/7 Wall Street, Douglas McIntyre ponders the target=_blank>worst-case scenario
target=_blank>worst-case scenario: That a lengthy General Motors strike could tip the U.S. economy, already in fragile shape, into recession.
Meanwhile, the bad news keeps stacking up for the Detroit automaker. GM's Brazilian unit has just announced that 29,090 vehicles produced in Brazil during 2006 and 2007 are being recalled due to defects in the suspension and seat screws. The affected models are the Corsa, Montana, Meriva, S10 and SUV Blazer.