| Some see GM bankruptcy risk rising
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One analyst puts bankruptcy at GM at 30% after Delphi filing, but another disagrees.(Full story.)
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NEW YORK (CNN/Money) -
General Motors Corp. and the United Auto Workers are discussing a possible plan for the automaker to offer buyouts to encourage older workers at Delphi Corp. to retire, according to a news report Tuesday.
Delphi, GM's former parts division, has been operating under bankruptcy protection and such a deal could reduce the auto supplier's payroll and help the transition to retirement for some of the 34,500 UAW workers, the Wall Street Journal said.
Buyouts could also help reduce the threat of a strike and labor uncertainty stemming from Delphi's bankruptcy filing, according to the Journal.
The outlines of any deal are still up for discussion, the paper said.
Strikes at certain Delphi plants would only make matters worse for GM. The financially struggling automaker has lost about $3 billion this year as massive losses in North America continue to pile up and investors lose confidence.
Under the 1999 spinoff of Delphi, GM agreed to guarantee the layoff benefits, pensions, retiree health care and life insurance of UAW-Delphi workers, though the extent of that guarantee is unclear, the paper said.
Delphi, which filed for bankruptcy protection Oct. 8, is GM's largest auto parts supplier, selling it $15 billion a year in a variety of parts from steering systems to electronics.
A GM spokeswoman did not comment on the talks, the paper said.
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GM (down $0.45 to $23.29, Research) shares recently hit a 23-year low, click here for more.
Will GM follow Delphi into bankruptcy? Click here.
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