Ford and the United Auto Workers announced the four-year agreement covering 54,000 employees.

Ford said its deal will create an independent trust to manage retiree health care, the centerpiece of accords at General Motors Corp. and Chrysler.

Chief Executive Officer Alan Mulally sought a contract that would reduce labor costs for Dearborn, Michigan-based Ford, which had a record loss of $12.6 billion in 2006.

UAW Vice President Bob King goals for this contract were to win new product and investment, to enhance job security and protect seniority.

Ford plans to close 16 of 41 factories in North America as of today they have only identified 10 of the factories.