The "legacy costs" for retired auto workers are huge.  Thousands of dollars of a new automobile sticker price will really go to pay for  the cost of pension and health care for retired workers.   Here's a possible solution from Bloomberg.com.

General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's Chrysler may create an independent health-insurance fund to trim their combined $114 billion in future retiree health-care obligations, five people with direct knowledge of the talks said.

The U.S. automakers would each contribute to the fund to pay for health-care benefits of United Auto Workers retirees, said the people, who didn't want to be identified because the discussions are private.

Joint health-care fund for Ford, GM and Chrysler.