•Now that we’ve seen what the various parties are owed by GM, what is it going to take to make them whole? According to CNNMoney writer Chris Isidore, GM’s market value will need to be $67 billion for taxpayers to get their money back. What about the VEBA? With 17.5% of 500 million shares, a $67 billion market value would equate to around $11.4 billion. Combined with the $6.5 billion in preferred shares and the $2.5 billion promissory note, the $20 billion obligation is met. If, as one analyst estimates, the market value is $90 billion, that would be another $4 billion. Of the four estimates offered by Isidore, the lowest is $64 billion, so it seems possible, if not likely, that the VEBA will in fact be funded to the pre-bankruptcy agreed level of $46.7 billion ($26 billion was transferred at the beginning of this year when the VEBA came on line).
• With last week’s announcement that Toyota and electric car maker Tesla will partner building electric vehicles and reopen the NUMMI plant to produce them, there is renewed hope for UAW members who lost their jobs there a couple of months ago. UAW President Ron Gettelfinger said, “Our union’s hope is that this venture will give first hiring preference to former NUMMI employees who are already trained and highly skilled.” Estimates for employment are around 1000 with job one, a $50,000 Model S sedan, due in 2012.
•Reminder: There will be another blessing of the bikes Tuesday, May 25, by the arch 15 minutes after longest line time or 5:45, whichever comes first.
•Reminder: Friday, May 28 is the last day to cancel or opt out of automatic enrollment in the PSP. Call 1-800-489-4646 or go to gmbenefits.com.
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