- The Washington Times - Wednesday, April 1, 2009

DETROIT (AP) - General Motors Corp. says it expects to save $1.1 billion a year in labor costs in 2009 and 2010.

GM submitted a progress report to the Treasury Department Tuesday as part of the requirements for the $13.4 billion in aid it has already received.

The Detroit automaker says a tentative agreement reached with the United Auto Workers union in February would save money by modifying wages, benefits and work rules, as it tries to be more competitive with foreign automakers’ facilities in the U.S.

Union members have yet to vote on the contract modifications, but President Obama says GM’s efforts must go further to cut costs. He’s giving the company 60 days to come up with a better plan in exchange for another $21.6 billion in loans.

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