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DETROIT — General Motors shares rose Monday on news that the company’s new contract with the United Auto Workers union will bring only a minimal increase in recurring costs for the automaker.
The tentative agreement, reached late Friday, includes a $5,000 signing bonus for workers and the possibility of sweeter profit-sharing checks for GM’s 48,500 factory workers. But most aren’t likely to see a pay raise.
Because fixed costs were contained, GM will be able to break even in a depressed U.S. auto sales market of around 10.5 million, said a person familiar with the contract, who asked not to be identified because terms of the deal haven’t been released to union members. The Associated Press
