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GM: Some parts of Chrysler deal could help GM

(Agencies)
Updated: 2009-05-06 12:38

General Motors CEO Fritz Henderson talks to reporters on Capitol Hill on Tuesday, May 5, 2009 in Washington. [Agencies]

WASHINGTON -- General Motors CEO Fritz Henderson says some elements of a labor agreement between the United Auto Workers and Chrysler could benefit GM as it tries to stave off bankruptcy.

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Henderson told reporters Tuesday he was ready to resume bargaining with the union. The concessions sought by GM are likely to follow along the lines of those reached with Chrysler last week.

The Chrysler labor deal calls for the UAW to take a 55 percent stake in a new Chrysler in exchange for US$6 billion of the $10.6 billion the company must pay into a union-run trust that will take over retiree health care expenses starting next year. The union's stake in GM is expected to be just under 40 percent.