Auto Knight

GM And UAW Reach Agreement

by Darren

The UAW has agreed to concessions demanded by General Motors. The deal was similar in some ways to a recent agreement with Ford Motor Company.

Terms of GM’s $13.4-billion federal loan require the automaker to push the union to accept half the money owed to the fund in company stock instead of cash. The automaker must also restructure its debt with bondholders.

The labor concessions were needed by GM in order to keep US Treasury Loans.

GM has been to the public trough multiple times recently, and expects to go back again soon. They say they need an additional $2 billion by month’s end to avoid bankruptcy.