Keybanc Cuts Visteon
Keybanc cuts Visteon Corp. (VC ) to hold from buy and cuts General Motors (GM ), Ford (F ), and Delphi Corp. (DPH ) to underweight from hold.
Analyst Brett Hoselton says based on meetings with members of UAW leadership and other industry sources, he thinks UAW concessions to GM will likely fall well below investor expectations ($400 million to $800 million, vs. $2 billion annually) when announced around June 30.
He believes that UAW will likely agree to consolidate workers onto one health care plan enabling GM to benefit from economies of scale and saving the company only $400 million to $450 million annually.
UAW may agree to allow GM to shift UAW workers from its Jobs Bank program into Supplemental Unemployment Benefits program, saving GM about $300 million to $350 million.