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

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