Jon Rogers Costs Quotations

The primary issues today's initiatives set out to resolve are still lingering -- legacy labor costs at GM and a possible supply disruption at Delphi.

Near term, risks associated with restructuring actions, an aging product portfolio in a hyper competitive environment, deteriorating market share, an over reliance on light trucks and fleet sales, and higher borrowing costs inhibit a return to peak profitability.

Although we believe GM can reduce capacity and structural costs over the long term, the company will emerge from restructuring with lower earnings power and operating leverage. With a lower dividend, the costs of investing in this longer-term restructuring story have increased dramatically.

With high costs to GM, Delphi and the UAW, a strike still looks unlikely, despite the potential for increased rhetoric over the next several weeks.