Now who said making money of y2k was wrong?

GM Could Pay EDS $75 Mln Y2K Bonus

DETROIT (Reuters) - General Motors Corp. (NYSE:GM - news) has agreed to pay computer services vendor Electronic Data Systems Corp. (NYSE:EDS - news) an additional $75 million in early 2000 if the automaker avoids a material financial loss due to Year 2000 computer problems, GM said in a government filing Monday.

GM, the world's largest automaker, said in its quarterly filing with the U.S. Securities and Exchange Commission that it expects to spend a total of $710 million to $780 million for its entire Year 2000 compliance program, including services from EDS.

GM estimated the value of its contract with EDS to prepare the automaker's computer information systems for the calendar change to 2000 at $335 million. GM used to own Texas-based EDS but spun it off to shareholders several years ago.

The automaker said in the SEC filing it does not expect a significant business interruption as a result of the Year 2000 change. But the company said uncertainty remains about how the change may affect utilities, financial institutions and government agencies that provide services to GM.

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-- y2k dave (xsdaa111@hotmail.com), May 18, 1999

Answers

If memory serves, GM to EDS is an internal transfer.

C

-- chuck, a Night Driver (rienzoo@en.com), May 18, 1999.

* * * 19990518

That's a BIG and MEANINGLESS "IF," y2kDave! Where's tthe EDS PENALTY (consequence, downside) if EDS fails to perform? It's all hype and show. D&B and Moddy have correctly identified the futility of factoring Y2K into their so-called stock ratings. That speaks volumes, my friend--not my opinion!

Again, GM ( et al ) deny the impact that Y2K will have on their 100,000+ suppliers! Medical insurance plans and insurance industry entities have the same Y2K-dilema with doctors offices, clinics and hospitals.

It's denial at it's "finest!" Nothing more. Of course, without electricity, everything else becomes de facto moot!

Regards, Bob Mangus < rmangus@hotmail.com > * * *

-- Robert Mangus (rmangus@hotmail.com), May 18, 1999.

Chuck,

EDS is no longer a GM subsidiary. It's a separately listed company on one of the exchanges since some time last year, as I recall.

What GM's big Y2K bonus to EDS is, is a big windfall for our favorite, big-eared Texan gnome, Ross Perot. As GM cut-loose EDS, he bought-in and now is the majority shareholder. I believe he's merged his Perot Data Systems with EDS in the last year.

So here we are with EDS having gone full circle, from Perot's pocket, to GM division and back to Perot's pocket. Along with many billion dollars of GM's money and now this continuing income stream from an almost certainly doomed Y2K project. Always said Perot was a snake oil salesman, this just reinforces my opinion.

WW

-- Wildweasel (vtmldm@epix.net), May 18, 1999.