The automakers say health-care premiums add $1,200 to $1,500 to the cost of every car, much of that to pay for benefits for retired workers - a cost their competitors don't face because they have few retirees.
" Health care and other benefits for retired workers, not those for current workers, is what makes the U.S. companies noncompetitive, Harbour said.
Toyota, Honda and others offer comparable benefits to their employees" but not to retirees, he said. The American companies say they will need to spend up to $100 billion on future health insurance for retirees.
Another problem is that GM already has about five retired workers for every one worker on the production line, a problem expected to worsen. Nearly two-thirds of GM's current employees will be eligible to retire within five years, and about 30 percent will be eligible at Ford and Chrysler, says the UAW.
This growing legion of retired workers is living far longer than past actuarial studies predicted. And they are spending more on medical procedures
