GM Gets Some Breaks, Approaches Viable Cost Structure (GM)

| About: General Motors (GM)

With the news that a group lead by Kohlberg Kravis and Goldman Sachs bought 78% of GMAC Commercial Holding Corporation, and the proposed worker buyout coming from the UAW/Delphi talks, it appears that General Motors Corp. (GM) may have finally been dealt some good cards.

The yield from the GMAC deal, including repayment of inter-company loans, will total $9 billion. If enough workers take the news buyout packages GM has offered, the company actually may be on its way to having a cost structure that matches revenue.

There are still several hands to be played, but the news of the last 24 hours has been good.

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Douglas A. McIntyre is the former Editor-in-Chief and Publisher of Financial World Magazine.