GM announces deal on health care, $1.1 billion loss

[Judi Lynn]

GM announces deal on health care, $1.1 billion loss

Monday, October 17, 2005

By JOE GUY COLLIER
FREE PRESS BUSINESS WRITER

General Motors Corp. announced early Monday morning that the company had taken steps to save money on health care.

Details of the deal weren't immediately available, but GM Chairman and Chief Executive Rick Wagoner released a statement about the health-care savings and was scheduled to hold a press conference to explain the deal.

"Today we are announcing a significant update on our plan to address our health-care burden, which is the cornerstone of our efforts to reduce structural costs by a $5 billion run rate by the end next year, " Rick Wagoner said in the statement. "These actions represent an acceleration of the pace and scope of our North American turnaround plan".

The announcement comes as GM reported a third quarter loss, excluding special items, of $1.1 billion, or $1.92 per share. That's more than twice as much in losses as analysts expected. In the same quarter last year, the company made $315 million.
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