Motoryzacja

The tentative contract between General Motors Corp. and the UAW could quickly wipe out more than half the gap in labor costs between GM and Toyota Motor Corp., pulling Detroit ever closer to its Japanese rivals, industry experts say.

General Motors Corp. will offer buyouts to more than half of its hourly workers as part of a plan to cut labor costs, Chairman and CEO Rick Wagoner said this afternoon. It could cut costs both by reducing its workforce and replacing some of its workforce with lower-paid workers.

The tentative new labor contract between the UAW and General Motors Corp. will likely save the troubled automaker more than the $1 billion that an earlier proposed deal was to save. The tentative deal, which still must be ratified by members, resembles what the union agreed to concede to Chrysler LLC prior to its filing for bankruptcy protection.

Canadian Auto Workers President Buzz Hargrove expects Chrysler LLC and General Motors Corp. to agree to the same tentative contract the union reached Monday with Ford Motor Co., but industry analysts say the other two automakers may not go along with the higher costs.

Although the Canadian Auto Workers union says it expects its tentative labor deal with Ford Motor Co. to serve as the pattern for Chrysler LLC and General Motors Corp., Chrysler's top negotiator expressed some concerns about the deal.