GM says 35,000 workers accept buyouts
DETROIT (Reuters) - General Motors Corp. (GM.N: Quote, Profile, Research) said on Monday that 35,000 workers -- or almost a third of its hourly work force -- had accepted payouts to retire and leave the company, topping expectations and putting the world's largest automaker two years ahead of schedule on planned job cuts.

Also, Delphi Corp. (DPHIQ.PK: Quote, Profile, Research), a former GM parts unit that is restructuring in bankruptcy, said 12,600 of its hourly employees had agreed to retire under an incentive plan offered as part of an agreement with GM and United Auto Workers union.

The better-than-expected acceptance of the offers makes it more likely that GM can avoid a costly work stoppage at Delphi and allows the automaker to slash the rolls of unionized workers being paid long after their jobs are eliminated, GM said.

GM also raised its cost savings target for structural costs -- representing mostly its recurring payroll-related burden -- to at least $8 billion annually by the end of 2006 from $7 billion.

GM shares, which have rallied more than 40 percent this year on expectations the battered automaker was making progress in its restructuring, gained 1 percent in after-hours trade.

"This is another step in the turnaround accomplished," said David Healy, an analyst with Burnham Securities, who personally owns GMAC notes.

Other analysts were equally positive, noting that GM would be able to realize immediate cost savings on wages as it brings in lower-paid temporary workers to staff depleted factories.

"This is great news. It's higher than everybody anticipated. That's a good thing. But there is still a long way to go," said Rebecca Lindland, an analyst at Global Insight.