Contract negotiations between General Motors Corp. and...

Contract negotiations between General Motors Corp. and the United Auto Workers reached a critical point as local union officials hoped for an agreement but prepared for a possible strike today.

GM spokeswoman Katie McBride reported progress at the talks in Detroit but said several tough issues remained. She declined to comment on specifics.

A union official who asked not to be identified said the main outstanding issues were retiree healthcare expenses and promises from the company that it would build new vehicles at UAW-represented factories.

Once the union reaches an agreement with GM, it will try to implement similar deals at Ford and Chrysler.