GM confirms making $4 billion cash contribution to pension plans

Article by Christian Andrei, on December 3, 2010

Putting it nearer to its goal of fully funding its pension plans and having minimal debt, General Motors Co. recently announced that it made a $4 billion cash contribution to pension plans for its US-based hourly and salaried workers. Last month, GM went public after having gone through a US government-assisted bankruptcy reorganization.

In particular, GM made a $2.7 billion contribution to a plan for its hourly workers and $1.3 billion for its salaried workers. Last October, GM said that it will contribute at least $4 billion in cash and $2 billion in common stock to its pension funds for US hourly and salaried workers.

In a release, Chief Financial Officer Chris Liddell said that GM's US pension plans were underfunded by $17.1 billion as of year-end 2009. GM will be updating those figures in its 2010 annual filing to US securities regulators.

GM and Chrysler Group LLC went through government-funded bankruptcies last year because of untenable costs, shrinking revenue and the global recession.

Chrysler is now being managed by Italy's Fiat S.p.A. Because of the restructuring, automakers were able to strengthen their balance sheets and their break-even points. GM investors were informed last month that the company was seeking to fully fund its pension accounts.

Topics: gm, united states

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The much-anticipated debut of the new Wrangler will surely happen. As it approaches, we’ve gathered all the latest information released so far. Of course, most are expecting that the next...
by - December 5, 2016
Nissan has announced the pricing for its new commercial pickup line. So for those who have been waiting for Nissan’s official price list (plus a little more info), read on… ...
by - December 5, 2016
Sorry folks, the AMG-fied Mercedes-Benz X-Class will remain in the fantasy world. According to some news, the AMG big boss has finally spoken up about why an AMG X-Class is...
by - December 5, 2016
In Japan, Toyota stays in the limelight by always cooking up something new for its famous 86 sports car. A colour orange Toyota 86 performance edition is one that’s hard...
by - December 4, 2016
Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries