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Published: Saturday, 4/28/2007

GM delays vehicles over cost-cut rift with UAW

DETROIT General Motors Corp. has suspended development activities on vehicles at two major U.S. assembly plants as the United Auto Workers union has backed out of negotiations on cost cuts at the factories, labor and company sources said.

GM, scrambling to trim labor costs to better compete in the United States with Asian automakers, has requested so-called competitive operating agreements at its Fairfax, Kan., and Lordstown, Ohio, plants. However, the UAW s senior leadership team has abruptly ended the COA negotiations at the two plants owing to disagreements with GM.

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