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Ford and Union in Accord on Health Care

By GottaLaff

It's a deal:

The Ford Motor Company can substitute its stock for as much as half of its payments into a retiree health care trust under a deal announced Monday by the automaker and the United Automobile Workers union.

The agreement could form the basis for similar deals with General Motors and Chrysler, which need to cut costs and demonstrate that they can survive under the terms of their loans from the federal government.

“The modifications will protect jobs for U.A.W. members by ensuring the long-term viability of the company,” the union’s president, Ron Gettelfinger, said in a statement.

Union leaders plan to vote on the proposal early this week, Mr. Gettelfinger said, before presenting the deal to U.A.W. members at Ford for ratification. The changes would also require court approval.

Auto plants shutting down

By GottaLaff

All 30 Chrysler plants will close for one month, per CNN. Ford is adding a week to its normal 2-week holiday shutdown schedule. 46,000 Chrysler workers will be affected.

The CNN money guy is saying this could trigger bankruptcy.

Chrysler union workers will be paid, but not full salary.

Chrysler announced Wednesday it is closing all its North American manufacturing plants for at least a month, the starkest move taken by U.S. automakers as they anxiously await word about government loans.

[...] Chrysler and General Motors fear they might not have enough money to pay their bills in a matter of weeks.

Attempting to cut costs, GM was halting construction of a plant tied to one of its most important projects, the Volt. Ford also said it will shut down 10 plants for an extra week in January because of sluggish sales.

Chrysler said it would extend the normal two-week holiday shutdown that begins Friday to at least Jan. 19 at all 30 of its factories due to slumping sales.

It's been more than a month since the White House started "looking at" what they could, or would, do.

Sluggish auto sales worldwide are taking a toll on foreign automakers as well. Honda Motor Corp. said Wednesday that it would halt expansion in Japan, Turkey and India and cut 450 temporary workers in Japan through February.

Nissan Motor Co. said it would reduce Japanese production by 78,000 vehicles and also cut 500 temporary workers there.

Ford CEO To Road Trip In Hybrid To Congress

What a crock.

Ford's CEO Alan Mulally plans to ride in a Ford hybrid all the way to Washington to make the point that he's a true penitent. The others apparently intend to fly commercial for their appearances before congressional committees later this week.