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

Whether or not you’re a tech addict, you realize that the digital revolution is now moving at high speed. Before you know it, there’s already a new one on the...
by - January 17, 2017
We really couldn’t deny that quite a number of Audi customers and would-be-buyers are intently waiting for higher performance RS versions of the Audi A4 and A5. Of course, these...
by - January 17, 2017
The Chevrolet Cruze is coming to Australia. But it won’t be known as the Chevrolet Cruze. Instead, it will bear the Holden badge and get the Astra moniker. The 2017...
by - January 17, 2017
As expected, four years after the current generation of the BMW 4 Series was introduced in 2013 with the BMW 4 Series Coupe, the German premium carmaker is implementing a...
by - January 17, 2017
As BMW continues to pursue its plans for the coming years, President-elect Donald Trump gave out a warning to car manufacturers to prevent them from exporting their cars to the...
by - January 17, 2017
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