Shares' upgrade has GM stocks going up

Since GM has agreed to Delphi buyouts, the analyst said a strike is unlikely.
DETROIT (AP) -- General Motors Corp. stock rose Friday after an analyst upgraded the company's shares and said the automaker likely will avoid a devastating strike at Delphi Corp.
Brett Hoselton, an analyst with KeyBanc Capital Markets, upgraded GM's shares from "hold" to "buy" and said in a note to investors that he believes Delphi, GM and the United Auto Workers will reach an agreement as early as June that will avoid a strike.
Hoselton also said GM's earnings should improve this year and next because of the company's cost-cutting efforts and its new lineup of full-size pickups and sport utility vehicles.
GM shares were up 28 cents, or 1 percent, to close at $26.09 on the New York Stock Exchange.
Delphi, which filed for bankruptcy protection in October, wants to lower workers' wages and has been negotiating for months with the UAW and GM, its former parent and largest customer. Delphi was in court Friday asking a federal bankruptcy judge for permission to cancel its contracts, and the UAW is threatening to strike if that happens.
What's happened'
But Hoselton said the three parties already have dealt with the most significant hurdle in their negotiations, which was buyout deals for Delphi workers. GM has agreed to fund buyouts for approximately 13,000 of Delphi's 24,000 UAW members, and is allowing an additional 5,000 workers to flow back to GM.
Hoselton said the last remaining issue is wage subsidies for workers who don't accept the buyouts. He believes GM will agree to supplement Delphi workers' wages with the money it will save by buying parts from suppliers that charge less than Delphi.
"We do not see this as a significant problem," he said.
An announcement of an agreement in early June would coincide with the UAW's annual convention, which is scheduled for June 11-15.
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