The UAW broke off crucial talks with GM today, only 3 days before the beleaguered company is scheduled to submit restructuring plans to Washington, Reuters reports. At issue were retiree healthcare costs that executives want to replace partly with shares in a recapitalized GM. "It doesn't seem like the stakeholders are really prepared to give a whole lot," one industry analyst said.
Similar talks between Chrysler LLC and the UAW are stalled this weekend. If both companies fail to submit plans on time, they risk losing $17.4 billion in federal funding. President Obama would be forced to either give them more money or let them go bankrupt—neither a politically appealing choice.