General Motors said that new agreements with the United Auto Workers will save the company at least $1 billion annually. The savings were outlined in a 17-page report submitted to the U.S. Treasury Department yesterday.
GM said that last year’s hourly costs fell to $7.6 billion and that it is projecting a further drop to $6.5 billion this year. The Detroit automaker said that it expects cost to drop to $4.8 billion by 2012.
GM said that it also sought $10.2 billion in Energy Department loans from the $25 billion low-cost loan retooling program. However, it is unlikely that the Energy Department can legally give GM any loans since Obama’s auto task force decided that the company isn’t viable in its current form.
– By: Omar Rana
Source: Detroit News