LANSING – GM could be split into two companies, says a report from Reuters. A new legal entity would be formed that contains all the company’s profitable operations, like Cadillac, Chevrolet, GMC and Buick. And a so called “old” GM would retain all the company’s money losing operations, like Hummer and Saturn. The old GM would be taken into bankruptcy while the new one would not, which could avoid the problem that assumes consumers will not buy a car from a bankrupt company.
A report from the U.S. Department of Labor says membership in the United Auto Workers union fell 7 percent last year to only 431,000 workers. In the last three years the UAW has lost over 100,000 members. You know, a few years ago an analyst told me that the union would not be viable if its membership fell under 500,000 members. However, the Detroit Free Press reports that the UAW is cutting its spending to reflect the loss in membership, and besides, the union says the government under reports its membership and that it actually has more than 500,000 members.
Hyundai is one of a few companies that’s seen its sales rise in the US this year and its Assurance program, which takes over car payments if a buyer loses their job, is credited for the boost. Now, Ford and GM will offer their own versions. Ford will cover payments up to $700 a month for up to 12 months if a customer loses a job. GM will pay $500 a month for nine months. GM will also help protect the retail value of the vehicle at trade-in after the customer is halfway through the finance contract.
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