GM CUTS COSTS

DETROIT - Union workers at General Motors Corp. ratified a deal to help the automaker cut billions of dollars in health-care costs, but analysts said the move was far from enough to turn things around at the struggling auto giant.

NOT ENOUGH

Welcoming the ratification, which was announced by the United Auto Workers union on Friday, GM said the deal would slash its long-term health-care liability by $15 billion, cut its hourly health-care liability by 25 percent, and reduce health-care expenses by about $3 billion annually, before taxes.

GM shares rose more than 4 percent on the news, after spiraling to a 23-year low on Thursday on fears about mounting financial woes at GM and a possible strike at its main auto parts supplier, bankrupt Delphi Corp.

"The deal is a move in the right direction, but no one thinks this is the end to their problems. The laundry list of the things that GM needs to do to fix itself is about a dozen items long, and this deal was a small item on that list," Argus Research Group analyst Kevin Tynan said.

MORE NEEDED

GM is said to be considering certain redesigns aimed at trimming expense further. For example, preliminary talks have centered around removal of glove compartments from all GM cars. "Most folks rarely use them anyway, they are usually full of junk you thought you lost years ago. And the heat in the car ruins the condoms," said Peter Booker, GM Expense Reduction Specialist. "And turn signals on all four corners of the car - we might move them to the roof and only need two that way. And why a parking brake? People put the car into Park - that should be enough! Ashtrays have been proven to be a safety hazard - we can cut them. That means cigarette lighters can go too. You ever drop one of those into your lap? Liability costs right there - eliminated!"

GM is allegedly working on new 3 wheel designs for the Pontiac and Chevrolet divisions.