GM prodded to exact huge cuts

The Detriot News reports:

Las Vegas billionaire Kirk Kerkorian signaled his intent Tuesday to reacquire the 12 million shares in General Motors Corp. he sold last month -- and then buy 12 million more pending evidence that GM and the UAW can craft a more aggressive plan to right-size the automaker.

This says two very important things:

First, the casino mogul's Tracinda Corp., which owns 7.8 percent of GM shares and is being advised by former Chrysler Corp. CFO Jerry York, is moving from being the passive investor detailed in federal filings to an activist one determined to foment real change -- one way or another.

Second, that Kerkorian and York believe GM is fixable so long as Chairman Rick Wagoner, his team and the UAW move more quickly than they have so far to cut costs, sell assets, dump at least two brands and cut salaries -- including pay for directors -- in what York calls "equality of sacrifice."

We will see if GM can get the UAW to not act like a union.We aren't holding our breath.