General Motors said it would probably take as much as $6 billion from its fund to cover increasing health care expenses.

The Voluntary Employee’s Beneficiary Association fund was designed to provide health care aid to the company’s retirees. The fund is now managing about $20 billion, according to the automaker.

"It is a source of liquidity if we need it," said GM Chief Financial Officer John Devine. "We can extract it pretty aggressively, if we have to." The company will spend the money on increasing health care costs that amouinted to $700 million in the first quarter, he added.

General Motors plans to spend about $5.6 billion on health care for active and retired workers and their families this year, which is some $400 million higher as compared with the 2004 costs. That means the company will have to increase the price of each vehicle by some $1,000.