Ford, UAW talks continue

DETROIT (AP) -- Ford Motor Co. and the United Auto Workers were negotiating the financial terms of a health-care trust and other key issues Wednesday as talks on a new four-year contract continued, a person briefed on the negotiations said.

Similar trusts were established in contracts reached with General Motors Corp. and Chrysler LLC, but Ford (Charts, Fortune 500) may be seeking a more favorable deal. The person asked not to be named because the talks are private.

Ford spokeswoman Marcey Evans declined to comment on the talks. A message seeking comment was left for UAW spokesman Roger Kerson.

UAW President Ron Gettelfinger joined the talks this week, a sign that the two sides are close to an agreement, another person briefed on the talks said Wednesday. That person also asked not to be named because the talks are private.

The union has not yet set a deadline to strike Ford if a tentative contract isn't reached. The UAW called short strikes against GM and Chrysler as a way to speed negotiations. It would be required to give Ford 72 hours' notice before calling a strike against the automaker.

Ford hopes UAW contract will save factories
Ford's four-year contract with the UAW expired Sept. 14 but has been extended while the negotiations continue. The contract covers almost 60,000 U.S. hourly workers.

Ford is expected to seek many of the same things GM (Charts, Fortune 500) and Chrysler won in their contracts, including lower wages for thousands of workers and buyout deals. In exchange, Ford may agree to keep open some of the six unnamed plants it has told the union it's considering closing.

Ford is the weakest automaker financially in this year's round of contract talks. The No. 2 U.S. automaker lost more than $12 billion last year and has mortgaged its assets - including its blue oval logo - to fund its turnaround plan. It already has announced the closure of ten U.S. plants as part of that plan.