DETROIT (AP) ??” General Motors Corp. will try to reduce its U.S. employee and retiree health care liabilities in coming contract talks with the United Auto Workers, according to a government regulatory filing Thursday.

The world??™s largest automaker said its obligation for post-retirement health care and other benefits was US$68 billion at the end of last year and could grow on a global basis.

The Detroit-based company said in its annual report filed with the U.S. Securities and Exchange Commission that it spent $4.8 billion on health care in the U.S. last year, and that is expected to drop only slightly to $4.7 billion this year.

"We must continue to make structural changes to reduce our U.S. health-care cost burden, the source of our largest competitive cost disadvantage," the company said in the filing.

GM said it needs to continue to reduce structural and material costs, and its production must become more efficient in order to return to profitability. But it said restrictions in labour agreements could limit cost savings.

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