Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
GM May Stockpile Cars as Strike Cushion
Jan. 5 (Bloomberg) -- General Motors Corp. plans to boost vehicle inventories as much as 20 percent higher than normal as a precaution against a possible labor strike this year, people familiar with the matter said.

The world's largest automaker may stockpile as many as 1.2 million cars and trucks, up from about 1 million, according to people briefed on GM's strategy. They didn't want to be identified because the plans haven't been made public.
The move would signal that GM is bracing for a possible showdown with the United Auto Workers over health-care and other costs. GM Chief Executive Officer Rick Wagoner said yesterday that even after cutting $9 billion in annual labor, health-care and manufacturing costs, his Detroit-based automaker needs more concessions from its largest union.

GM would build inventory ``to get the message across that they're going be tough during the talks,' said Sean McAlinden, a labor economist at the Center for Automotive Research in Ann Arbor, Michigan.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.