World's Largest Carmaker Posts Huge Loss, Slashes Health Care Costs, Jobs
|Topics: General Motors
October 17, 2005
General Motors, the world's largest carmaker, says it has worked out a deal with the United Auto Workers Union to reduce what it pays for health care for its workers.
The savings are expected to be about $15 billion. The company plans to save money by cutting another 25,000 jobs over the next few years.
The cost cuts come as GM announced a $1.6 billion loss for July, August and September, which was worse than investors had expected.
Analysts say the company's health care costs add about $1,500 to the cost of every car it produces.
General Motors has been losing market share to lower-cost car producers based in Asia.
Some information for this report provided by AP and Reuters.
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