DETROIT (AP) — The United Auto Workers union says it has reached a tentative deal with Ford Motor Co. on how the company will fund a trust that will pay retiree health care expenses.
The union says that a 2007 agreement with the automaker about funding for the union-run trust had been modified, but no details were released.
The Ford deal is likely to be the template for Chrysler LLC and General Motors Corp., both of which must change funding for their trusts under the terms of their government loans.
Chrysler and GM so far have received a total of $17.4 billion in loans and are seeking a total of $39 billion.
The loan terms set a target for Chrysler and GM to exchange half their cash payments to the trust for equity in the companies.
Copyright 2009 The Associated Press.