GM Offers Early Retirement Plan for Hourly Workers

U.S. automaker General Motors says it has reached a deal with its main union to offer an early retirement program for its hourly workers.

General Motors says the move is part of a plan to eliminate 30,000 jobs by 2008. It is also planning to shut down 12 factories by that time.

Under the plan, $35,000 will be offered to eligible workers from GM and its former parts subsidiary, Delphi Corporation.

Another 5,000 workers who are not eligible for the plan will be able to return to GM.

GM says it lost $10.6 billion in 2005.

The automaker's share of the U.S. market has declined since consumers stopped buying its profitable SUV's and other large vehicles due to soaring gas prices.

Some information for this report was provided by Reuters.