GM "close to UAW deal"

General Motors is nearing a deal with the United Auto Workers that would sees its labour costs slashed by over $1 billion (£659 million) a year.

The negotiations are under the direction of the US Treasury and agreement is expected as early as next week.

GM hopes to halve its remaining cash outlays for retiree health costs to around $10 billion (£6.6 billion) and reports suggest a 39 per cent equity stake in the reorganised company would be added to that contribution.

Slashing GM’s healthcare costs is a key part of the “controlled bankruptcy” plan laid out by the Treasury Department.

The deal will have to be approved by the UAW’s 60,000 members at GM.