GM shares hit $2.84 after trading hours today. Total outstanding stock is in the 600 million shares area. Hmm. Less than $2 billion buys GM - in a sense.
How many shares are owned by GM employees via 401Ks? Quite a few, but what percentage of the total? Can they control the voting rights of these shares? If so, what would it take to gain control of the corporation?
In 2006 the UAW reported about $1.3 billion in assets - a fair amount of it in semi-liquid form. Don't know what they have available today, but between their cash and the savings of employees, they might have quite a chunk available - if they have the will.
It used to be CW in the 1960s that 15% of stock equalled effective control. In this case - a move by UAW members to take over - it would probably take 60%, because the opposition will find ways to disenfranchise some portion (just like elections).
Of course, as soon as the BUY order went up, the big players would jump right in and bid it up - if for no other reason than to prevent employee control. So, if it were organized as a putsch, it would take real good security and timing. Probably not doable.
So - can we fight and win on that level? I don't know, but, if the action looked real, I'd put in $10,000 tomorrow. Moreover, if employees won control, I'd work to help raise the operating and development money that will be needed (and which may dwarf the purchase price). Wouldn't you?
Of course, such a step implies pay-cuts and changes in product focus, but, as owners, there's the risk and potential reward (dividends) of meeting the market's needs. Seems likely that expedited development of high-mileage vehicles, plus rerigging to get back into that electric railcar business, would create demand, at least. (Why not subcontract to construct wind turbines for GE, Siemens, Vestas, or ?, too?)
Consumer credit may still be a problem, but, if they - and we - can organize a takeover, we can organize a non-profit credit body to help distribution.
OK - not too likely a scenario, as I'm fairly sure that Congress is going to bridge them (to nowhere, basically). But there is another step that could be taken by the UAW, wherein it could look really smart and helpful. It could offer to raise money to create some level of an ESOP, in which it would gain some portion of actual ownership, so many Board seats, and some level of management input. Just a suggestion.