The News Review:
- GM Nears Crucial Deal With UAW
- State Farm to lower auto insurance rates in California
- US Rep Velazquez:’Crippled’ Auto Suppliers Threaten GM Chrysler
GM Nears Crucial Deal With UAW
Wall Street Journal
Treasury is near a deal that would cut its hourly labor costs by more than $1 billion a year and reduce its $20 billion pledge to the United Auto Workers to cover health-care obligations said people familiar with the matter. The plan is still in flux but GM and the union could finalize terms as early as next week. The Detroit auto maker expects to halve its remaining cash outlays for retiree health costs to about $10 billion and supplement that contribution with a 39% equity stake in the reorganized GM the people familiar with the matter said. Cutting GM’s health-care costs is an essential part of the “controlled bankruptcy” plan the Treasury Department is formulating for GM.
State Farm to lower auto insurance rates in California
Los Angeles Times
State Farm last year originally asked Poizner to lower rates by about $88 million Heller said. Consumer Watchdog argued that a $350-million reduction would be justified and Poizner approved a cut of $219 million. “Even with this rate decrease” Heller said “State Farm customers will be paying more than they should be for the auto coverage they are getting.
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US Rep Velazquez:’Crippled’ Auto Suppliers Threaten GM Chrysler
CNNMoney.com
House of Representatives Democratic leaderurged more government aid for auto suppliers Wednesday warning that thedramatic downturn in car sales could force half of the nation’s suppliers toshut down by 2012. Pending bankruptcy filings by parts suppliers threaten to further cripplemajor manufacturers like General Motors Corp. (GM) and Chrysler LLC said Rep. Nydia Velazquez D-N.