- Jan 7, 2002
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DETROIT ? General Motors Corp. is expected to report this week that its future obligation for employee and retiree health care topped $60 billion last year, and new Medicare legislation will do little to reduce the expenses.
The crushing health care burden will be detailed in GM?s year-end financial report with the U.S. Securities and Exchange Commission, the company said.
The $60 billion figure represents a sharp increase in the automaker?s projected obligations from 2002. In recent months, GM officials have said soaring health care spending has become the leading factor undermining the automaker?s competitiveness.
GM?s health care costs now account for $1,400 per vehicle, a severe handicap as the world?s biggest automaker battles to recover market share in an environment of falling vehicle prices.
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The crushing health care burden will be detailed in GM?s year-end financial report with the U.S. Securities and Exchange Commission, the company said.
The $60 billion figure represents a sharp increase in the automaker?s projected obligations from 2002. In recent months, GM officials have said soaring health care spending has become the leading factor undermining the automaker?s competitiveness.
GM?s health care costs now account for $1,400 per vehicle, a severe handicap as the world?s biggest automaker battles to recover market share in an environment of falling vehicle prices.
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