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The United Auto Workers placed its negotiations with General Motors Corp (GM) on temporary hold this week so it can concentrate all its efforts on reaching a new cost-cutting deal with Chrysler LLC.

The move comes as the April 30 federally mandated deadline grows closer, according to a person familiar with the talks. Chrysler must reach new union cost concessions, reduce its debt and sign a partnership with Fiat SpA by the federal deadline. The Obama administration said it will provide more low-interest loans if Chrysler achieves all of those requirements. Otherwise, the company will be forced to file for bankruptcy.

GM has a June 1 deadline to get similar cost-concessions from its unions and debt holders.

"Much of the focus with Chrysler is on reducing the benefit packages," this person said, but asked not to be identified because he doesn't speak for the UAW. "There is also debate on how Chrysler will pay for the retiree costs in the future. The UAW is worried that if Chrysler goes under, the members will be hit hard."

Chrysler must also reach a cost-cutting deal with the Canadian Auto Workers. Formal talks are expected to re-start on Monday.

"Chrysler is committed to working closely with all constituents, the Administration, U.S. Treasury and the Task Force over the next 30 days to reach a successful conclusion," Chrysler spokeswoman Shawn Morgan said.

News of the UAW focus on Chrysler was reported earlier Thursday by the Associated Press.

 
-By Jeff Bennett, Dow Jones Newswires; 248-204-5542; jeff.bennett@dowjones.com