Report: U.S. auto talks far from accord

DETROIT, Sept. 11 (UPI) -- Union leaders and Detroit's automakers will be hard pressed to reach a deal when contracts expire Friday, a report in The Detroit News said Tuesday.

"It's really tough to think they're going to pull everything together," Center for Automotive Research Chairman David Cole told the News.

"They have all the ingredients for a deal. It's just that weaving them together is really tricky to do," he said.

A key stumbling block is an arrangement to shift responsibility for retiree healthcare to the United Auto Workers from the Big Three automakers, the newspaper said.

That $90 billion transfer likely will be financed with General Motors Corp., Ford Motor Co. and Chrysler LLC cash and possibly stock, the News reported.

Other critical issues still unresolved include implementing work rules designed to make plants more cost-effective, the newspaper said.

With the deadline falling on a Friday, talks could continue through the weekend with little consequence, the newspaper said. ut if a deal isn't reached, the two sides will likely work under the existing contract as negotiations continue.

Both sides want to avoid a work stoppage that could further damage the already hurting companies, the News said.