Big 3 weigh health care fund
General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's Chrysler
may create an independent health insurance fund to trim their combined
$114 billion in future retiree health care obligations, five people with
direct knowledge of the talks said.
The U.S. automakers each would contribute to the fund to pay for health
care benefits of United Auto Workers retirees. The talks are
preliminary, so the fund's size and how much each would contribute
haven't been determined, the people said.
The companies are trying to deal with health care costs GM CEO Rick
Wagoner says cost them a combined $12 billion in 2006. The costs
contributed to losses at the automakers, while Japanese rivals posted