The Car Connection - Flint: The UAW Giveth and Taketh - The numbers get juggled around in the GM-UAW deal.

Did GM really Save ANYTHING in its UAW Deal on Healthcare?

Jerry Flint of thecarconnection.com takes issue with what the media has been saying about GM savings on healthcare from teh recent pact with the UAW. Flint's main message: GM says they are saving a billion per year, but the agreement calls for a billion a year to be put aside in a special fund for two years to help those who are hurt by the cuts. The net result: 0 savings.

Mr. Flint also commented that GM's bail out of Fiat in the amount of $2 Billion was reported not on newly-released 2005 financial statements, but instead it was reported on amended 2004 disclosure. Bottom line, if you are a GM stockholder, you can look closely at your annual report, you won't see hide nor hair of the $2 Billion.

Personally, if I worked anywhere near the top of GM's accounting department, or even its independent auditor, I'd have my resume out because even if the company avoids bankruptcy, it doesn't mean that there's going to be a happy ending, or even a soft landing for the people who string the numbers together.



The Car Connection - Flint: The UAW Giveth and Taketh - The numbers get juggled around in the GM-UAW deal.