General Motors said on Thursday it will take a fourth-quarter charge of about $US1.2 billion before taxes to cover costs of employee payments it agreed to make in its new contract with the United Auto Workers union, Reuters reported.

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The union contract, approved by members last month, includes lump-sum payments to retirees and vouchers toward the purchase of a new GM vehicle. These items will result in the charge, which amounts to $725 million after taxes, GM said in a regulatory filing cited by the news agency.


GM also said that it will likely take some unspecified “global operating charges” in the fourth quarter after it completes a review of its automotive business, Reuters added.

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