Breaking news tonight is that the auto maker bailout deal has collapsed. Initial reports point to the deal being scuttled by the UAW refusing to accept some of the conditions (read: wage & benefit cuts) that Republican lawmakers were demanding.
So, stock futures are tanking, rumors abound that GM may file bankruptcy as soon as Friday, and the UAW may be the loser in a huge game of chicken. If GM files bankruptcy and wins approval to unilaterally throw out the union contracts, Ford & Chrysler will be sure to tell the UAW that they need to take the same deal as GM’s workers, or they’ll have to file as well.
I’m guessing it’ll be a bloody Friday on Wall Street.
UPDATE: And here we go… first reports are out that GM will cut production by 250,000 vehicles for Q1 2009. Less cars & trucks to produce means less hours for workers. We’ll see how fast DC blinks and the Bush team issues the funds as some reports are saying they may do.