GM Retirees Talk About Health-Coverage Cuts

As part of the $15 billion liquidity improvement for General Motors (GM Quote), starting Jan. 1 health care for the over-65 retiree will be cut and substituted by a monthly increase to the pension.

That's a lot of people who have just lost health-care coverage -- many elderly, some sick, and most of whom thought they wouldn't have to think about health insurance ever again in their lives.

Michelle Bunker, GM health-care communications manager, said it took the decision to increase the pensions of the eligible retirees because it gave them more flexibility.

GM, along with the rest of the U.S. auto industry, has been struggling mightily of late as demand for high-profit-margin SUVs flags amid high gas prices and auto makers such as Toyota(TM Quote) and Honda(HMC Quote) produce more technologically advanced and appealing lineups. In fact, many people think the company is bound for bankruptcy in the near future. ...