• Dec 2, 2010
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.]
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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.


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  • 31 Comments
        • 4 Years Ago
        Cute little video of some idiot spewing his real viewpoint at the end. Where were the rants against all the other mfgrs that got federal $$ in low-interest loans?

        And, given the recent events, better a GM safety engineer than relying on 'other' safety engineers from your favorite brand there, FT (which is vaporware at this point).
        • 4 Years Ago
        You start a post with "B¡tch please" and deny that everyone here thinks you are a m0r0n? LMAO!:)
        • 4 Years Ago
        Gotta love how facts are like kryptonite to nincompoops such as superx1919.
        • 4 Years Ago
        From the guy who wants to legalize pot!
        • 4 Years Ago
        You were asked for proof of your claims about my posst and none was posted. So who's the liar?:)

        No wonder you are the laughing stock of this site! LMAO:)
      • 4 Years Ago
      Black&Blue is showing his socialist side with this post, no wonder everyone here thinks he's a d0uchebag:)
        • 4 Years Ago
        You assume FT has some deep hidden meaning (happens to be my initials you braniac) and you accuse ME of having an inflated ego? LMAO! Now that's irony:)

        BTW at Autoblog having your comments get voted down is a badge of honor due to the type of people that post here, this is the laughing stock of the internet forums:)
        • 4 Years Ago
        FT, I'm pretty sure most every post you make is downranked, based not on content, but simply because of the name shown. This is due to the fact that people understand that when they see the name "FT", the post immediately below is going to be filled with nothing but trash and utter idiocy.

        While Black&Blue does seem to be an idiot in his own regards, he doesn't yet hold a candle to you. So please... Make your way to that big red X in the top right corner of your window (or if you're a Mac user, which would not be surprising given your inflated ego, the little red dot at the top left).
      visionary
      • 4 Years Ago
      This money only means that GM doesn't have to borrow as much to fund their pension liabilities at this point in time. The liability is on-going and increases if car sales tank again or the number of retirees increases.
      • 4 Years Ago
      I thought my stock purchase was for a car company, not a pension/benefits provider. Sounds a lot like the old GM to me.
        CheckTheseOut
        • 4 Years Ago
        IMO: Any "investment" that is associated with a union in any way = Scam.
        • 4 Years Ago
        More + ratings for ignorant statements please! That's how I like my AB!

        And John P, if you're purchasing stock at your level of ignorance, I'm willing to bet the mobile home you bought it from isn't a double-wide.
        • 4 Years Ago
        Its called a liability. GM just eliminated $4 Billion worth of it, which should cause your stock to rise.

        I recommend you stick to mutual funds.
      • 4 Years Ago
      #1 thing that should done is to get out of the pension business for all future hires. This is a cash blackhole that people always ignored, and these things are empty due to direct funding not happening. All employees need to go w/401k and any company contributions taken at that moment.
        • 4 Years Ago
        They already did that with the 2007 UAW contract. That's what set a lot of this in motion a few years back, when the UAW agreed to take the burden of pensions and benefits off of the Big 3 and onto their back. The Big 3 owed billions and billions to the UAW due to the exchange and this is another payment towards totally transferring the benefits to the UAW.

        Also in the contract was that going forward, defined-benefit plans were going to be ended in favor of defined contribution plans.
      • 4 Years Ago
      GM put in trust over $6billion in 07, for UAW to take over the health benefits for it's retirees,and in Jan 09, UAW did just this, but the benefits went south,it's the dam UAW that has screw it's workers, not GM, the money is there, what has the union done with this money? Jan 1,2011 the brand name drugs will increase to $60.for a90 day supply.the salary in year 2000 for the top mangerment was around $8million a year,in the year 2008, the salary went over 20 million,we have the same coverage as a non-union plant for it's emplyees
      • 4 Years Ago
      Here's how it will play out. UAW will sell all of their stock to pay for these ridiculous pensions. UAW will then have no stake in GM and drive it to bankruptcy again. Government steps in, bails GM out, gives stock to UAW, and so on, and so on.
        CheckTheseOut
        • 4 Years Ago
        Exactly!
        • 4 Years Ago
        Totally agreed. GM should have bought back $4B from the US Government and sold those shares on the open market.

        If the UAW wants to fund their pensions, let them sell their stock to do so.
        • 4 Years Ago
        The Gov't DID step in, but won't again. Those "ridiculous" pensions may have to be arbitrarilly reduced by a third, but the unreasonable pay and work rules are now history. Now all the Toyota, Nissan and Honda drivers need incentives to trade in at an American-named dealership, and the country will be much better off! Attention, rednecks!
        • 4 Years Ago
        Tom, the world is full of greedy, selfish idiots. I'm sure your dad earned his pension, and I'm glad to see that the new GM is being a responsible corporate citizen.

        Forget the a$$wipes who post here, Most of them probably wouldn't mind if this country turned back to the days of slavery, as long as its not one them standing on the business end of the whip.
        • 4 Years Ago
        How dare GM pour money into a pension fund. Screw those retirees who busted their butts on the line for over 30 years. All that money should have went to the CEO's and exec's. Do you have a heart? My dad is a GM retiree. His pension is $900 per month. Social Security is an additional $900 per month. That's $1,800 per month. Can you live on $1,800 per month when you still have bills and a morgage.
        anthony
        • 4 Years Ago
        first off you ought to know what you talk about when your lips move other than just running your mouth for the sake of sound.......These so called ridiculious pensions you mention are what 30 to 40 thousand a year for the average worker........sounds like they need to live on the riviera doesnt it....you want reform so bad why dont you run your mouth about these million dollar ceo salleries along with the pensions.......your teabagger logic stinks dude and it shows large !!!!!
      • 4 Years Ago
      The problem here is stupid humans and their interminable arguing over nothing.
      We ducks are more thoughtful and our quacks are relevant.
      • 4 Years Ago
      First of all, GM got almost nothing from the IPO... ALL of the stock was provided by the US Gov't, Canadian Gov't and UAW and they are the ones who rec'd the cash from the IPO... NOT GM!!! GM exchanged some preferred stock for new common stock and a little cash.

      The $4B cash GM is using is the loan we, the taxpayers gave them thru the gov't last year!
      • 4 Years Ago
      Oh, goody!
      Union thugs who helped kill GM will have their juicy, undeserved pensions after stock and bond holders took huge haircuts.

      The corrupt, Obama & Co. "saved" GM at the expense of former stakeholders so he could pander to the UAW. Good example of Obama's redistribution of wealth in action, right?

      Unions are parasites that ultimately kill their hosts!

      • 4 Years Ago
      In other words GM is getting back to its primary mission - funding pensions. One day, it will build cars people want.

      I like American cars, but I'm tired of protecting union workers and their fat pay checks by making everyone pay higher prices for every car - thanks to import taxes and import restrictions on the competition.

      Let the competition in, make America compete to win. No more cheating.
      • 4 Years Ago
      this was a prior agreement during the re-org for Gm and the UAW. This was planned. GM is trying to get out of the pension business.
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