Jump to content

GM makes $4B cash payment to pension plans


NINETY EIGHT REGENCY

Recommended Posts

GM makes $4B cash payment to pension plans

ASSOCIATED PRESS

General Motors says it has made a $4 billion cash payment to its pension plans.

The company said in October that it would pay $6 billion to the plans, with $4 billion in cash and $2 billion worth of common stock.

GM says today's payment went to the U.S. pension plans. The automaker put $1.3 billion into the salaried plan and $2.7 billion into the hourly plan.

At the end of last year the U.S. pension funds were $17.1 billion short of their obligations. Their value will be measured again at the end of this year.

GM Chief Financial Officer Chris Liddell says the payments bring the company closer to fully funding its pensions and having minimal debt.

About 688,000 people get benefits from GM's U.S. pension plans.

Read more: GM makes $4B cash payment to pension plans | freep.com | Detroit Free Press http://www.freep.com/article/20101202/BUSINESS0101/101202015/GM-makes-4B-cash-payment-to-pension-plans#ixzz16xlQVR00

Link to comment
Share on other sites

GM Slashes Another $4 Bil In Debt

Maker moves to cover under-funded pension programs.

by Joseph Szczesny on Dec.02, 2010

GM moving to put its financial house in order, says CFO Liddell.

General Motors Company has contributed $4 billion to its long-underfunded hourly and salaried pension plans in the United States.

Chris Liddell, GM vice chairman and chief financial officer, said $2.7 billion was contributed to the hourly plan and another $1.3 billion to the salaried plan.

The $4 billion contribution was another step towards putting the company’s financial house in order. GM’s U.S. pension plans currently provide benefits to approximately 688,000 participants, said Liddell.

“This pension contribution puts us another step closer to our goal of fully funding our pension plans and achieving minimal debt. With a healthy balance sheet, a lower cost structure and focus on revenue generation, we continue to put in place the fundamentals for sustainable success,” Liddell said.

All of the company’s U.S. pension plans were, as of December 31, 2009 underfunded in total by $17.1 billion. The company will next re-measure its U.S. pension plans at year end 2010 and their funded status will be included in the 2010 Form 10-K.

The pension liabilities were one of the key debts that remained after GM completed its bankruptcy, last year.

Last month, GM successfully concluded an initial public offering of stock, the IPO raising a record $23.7 billion dollars for the company’s shareholders, including the U.S. Treasury Department, as well as GM’s own treasury, which kept the proceeds from the sale of convertible preferred shares.

GM isn’t alone in hoping to pay down its debt. Ford has been making similar moves, in recent months. The automaker was the only one of the Detroit Big Three not to go through bankruptcy – or to receive a federal bailout – so it didn’t have the courts to help cleanse its balance sheet.

On Tuesday, Ford converted $1.9 billion in debt to common stock – a process it used earlier in the year, as well, to trim several billion more from its liability column. So far this year, Ford has reduced its debt by about $12.8 billion, in the process lowering its annual interest payments by about $1 billion.

link:

http://www.thedetroitbureau.com/2010/12/gm-slashes-another-4-bil-in-debt/

Link to comment
Share on other sites

GM announces $4B pension fund deposit

by Jeff Glucker (RSS feed) on Dec 2nd 2010 at 1:29PM

General Motors continues to use its newfound cash in a manner that aims to please its accounting department. After receiving a sizable monetary infusion thanks to the largest IPO in U.S. history, GM is now focused on putting that money to good use. Its Korean subsidiary, GM-Daewoo, recently paid off a $1 billion credit that was owed, and today, The General is pouring $4 billion much needed greenbacks into its pension fund deposit.

As of December, 2009, General Motors measured its pension fund as being underfunded by an eye-watering $17.1 billion. This fund provides benefits to 688,000 participants and, while $4 billion is a far cry from 17.1, it is certainly a step in the right direction. According to The Detroit News, that figure will grow to include another $2 billion down the road in the form of GM stock.

[sources: General Motors, The Detroit News – sub. req.]

Show full PR text

GM Makes $4 Billion Pension Plan Contribution

2010-12-02

DETROIT – General Motors Company today confirmed it has made the previously announced voluntary $4 billion cash contribution to its United States hourly and salaried pension plans, with a $2.7 billion contribution going to the hourly plan and $1.3 billion to the salaried plan.

"This pension contribution puts us another step closer to our goal of fully funding our pension plans and achieving minimal debt. With a healthy balance sheet, a lower cost structure and focus on revenue generation, we continue to put in place the fundamentals for sustainable success," said Chris Liddell, GM vice chairman and chief financial officer.

All of the company's U.S. pension plans were last concurrently remeasured on December 31, 2009 for the 2009 Form 10-K and were underfunded in total by $17.1 billion. The company will next remeasure all of its U.S. pension plans at year end 2010 and their funded status will be included in the 2010 Form 10-K.

GM U.S. pension plans currently provide benefits to approximately 688,000 participants.

link:

http://www.autoblog.com/2010/12/02/gm-announces-4b-pension-fund-deposit/

Link to comment
Share on other sites

GENERAL MOTORS CONTRIBUTES $4 BILLION TO PENSION PLANS

By Mark Kleis

General Motors confirmed today that it has made the previously announced $4 billion cash contribution to its United States hourly and salaried pension plans.

The payment was made not due to a forced timeline, but as a voluntary move by the automaker. Of the $4 billion, $2.7 billion went towards the hourly pension plan and $1.3 billion went to the salaried plan.

“This pension contribution puts us another step closer to our goal of fully funding our pension plans and achieving minimal debt. With a healthy balance sheet, a lower cost structure and focus on revenue generation, we continue to put in place the fundamentals for sustainable success,” said Chris Liddell, GM vice chairman and CFO.

General Motors’ pension plans continue to be underfunded, but how much exactly is unknown – at least until the end of this month. GM’s U.S. pension plans were last remeasured on December 31, 2009 for the 2009 Form 10-K and were underfunded in total by $17.1 billion at that time.

GM says it will next remeasure all of its U.S. pension plans at year end 2010 and their funded status will be included in the 2010 Form 10-K.

GM’s U.S. pension plans currently provide benefits to approximately 688,000 participants.

link:

http://www.leftlanenews.com/general-motors-contributes-4-billion-to-pension-plans.html

Link to comment
Share on other sites

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.



About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×
×
  • Create New...