Even if the govt gets out of it completely, GM is still stuck with the UAW. To his credit, Akerson seems to be effectively treating the infestation the best he can.
Ideally GM will close every UAW plant and have all new ones be non-union. Then I think I would buy this stock.
I don't care what these pumpers on here say to the contrary -- my belief is this: Assuming GM ever does recover and get out of the Obama Intensive Care Unit and pull out its government $90 billion I.V. drip, I think the UAW will go after any profits GM reports.
In other words, you show me 2 or 3 quarters in a row of good profits (and by GOOD, I mean, a lot better than today's pathetic operating margin of 1.39%) and I'll show you a UAW membership getting ready to demand their 'fair share' of the profits.
The deal is SUPPOSED to be, they do their job, and they get paid. Shareholders don't get paid but they are supposed to get the profits.
No, these union guys believe that they also have the rights to the profits, not just wages. They are taught that stock market investors are elite selfish greedy ba$ta4ds. They are swine, who don't care about the little guy. They are taught that members have to fight for what is rightfully theirs and that includes corporate profits.
From YOUR point of view, first you risk your hard-earned capital watching GM fight the Toyotas and Hyundais of the world; if you get lucky and somehow make a profit, you then have got to fight the union to hang onto your rightful profits.
"I think the UAW will go after any profits GM reports."
I don't think GM will ever allow what happened to them in the past regarding "giving in" to UAW pressure for more of the pie because the deal will only ever be profit sharing. And, not neccesarily more than what's already in the agreement.
GM will be more beholding to the investor/shareholder than the UAW - guaranteed.
It will unfold in the next year as the last 7% of fed-owned shares is sold and as we get to the next agreement negotiations. I'm not even concerned about it in the least.