GM Talks Die, Chrysler's Stall as Deadline Looms

By Neal Colgrass,  Newser Staff
Posted Feb 14, 2009 8:03 PM CST
FormTech associate John Miller works on a vertical press die set in Royal Oak, Mich., Tuesday, Feb. 10, 2009.   (AP Photo/Paul Sancya)
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(Newser) – 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.