GM Prepares to Slash Retiree Benefits

General Motors Corp. is considering at least three proposals to shed most of its $64 billion in liabilities for retiree health care benefits in an attempt to return to profitability, according to people with knowledge of the plans.

GM, the world’s largest automaker and biggest private provider of medical coverage, is developing the options even as union leaders suggest any comprehensive health care fix will be rejected.

Chief Executive Officer Rick Wagoner said in January the automaker must reduce health care obligations for U.S. retirees after losing more than $12 billion the last two years.

The options GM is looking at include revising a union health care fund that is financed through 2011 and was agreed to only last year. The Detroit based automaker also may create a new fund for union retirees not yet part of any plan.


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jon21 - 4/16/2007 4:03:51 PM

0 Boost

Good job gm or maybe not.

CarbonBlue - 4/16/2007 4:59:15 PM

0 Boost

snip snip snip
hope you folks planned ahead...

neutral - 4/17/2007 12:34:53 AM

+3 Boost

This sucks