Deutsche Bank downgraded General Motors (GM
) to sell from hold, citing disappointment in the automotive company's recently announced restructuring efforts.
GM in recent days announced that it will slash its dividend, employee benefits, and executive salaries. It also said that Jerome York, who had proposed such moves, will take a seat on its board.
Analyst Rod Lache continues to be disappointed by the cash savings resulting from these restructuring efforts, which he says are limited. His concerns go beyond the company's ongoing market share erosion, uncertainty over the sale of its finance unit General Motors Acceptance Corp, or GMAC, and uncertainty over its former company Delphi. He says there appears to be an ever-increasing probability of confrontation with the United Auto Workers Union (UAW). He cuts his $22 stock price target to $17.