NEW YORK, Nov. 23 (UPI) -- Wall Street was less than grateful this Thanksgiving Day eve for the latest cost-cutting efforts at General Motors Corp.
This week's announced plans to close 12 factories and increase to 30,000 the size of its payroll reduction, an effort to achieve $7 billion in savings, appalled the United Auto Workers but seemed too little too late for investors, the Wall Street Journal reported Wednesday.
Fitch Ratings, for example, said even if that savings target is met, it hardly guarantees GM will have positive cash flow next year.
And Fitch was dubious about savings, at least in the short run: The ailing automaker's healthcare costs may actually increase by as much as $500 million for each of the next several years, Fitch Managing Director Mark Oline said.
Traders, meanwhile, responded to GM's plans with sell orders, knocking down GM's share price by more than 1.3 percent Tuesday.
