World's Largest Carmaker Posts Huge Loss, Slashes Health Care Costs, Jobs

VOA News
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.