According to an analyst, pension obligations for Ford at the end of 2011 totaled $74 billion, with $15.4 billion of that still being owed. To reduce that amount, Ford will be offering 98,000 current and former white-collar employees a lump-sum pension buyout. General Motors, whose $134 billion pension obligation was underfunded by $25.4 billion at the end of last year, will be doing the same with 42,000 of its salaried employees and its switching others to 401(k) plans. When Chrysler CEO Sergio Marchionne was asked by reporters if The Pentastar had similar plans, he answered "There's no need for us to do it."

In fact, Marchionne considers the idea inconsequential enough that the only elaboration he made was to say "Not at all." The smallest of The Detroit Three has the smallest obligation at $32 billion, and the smallest underfunded amount, $6.5 billion. That could be seen as another endorsement of Chrysler's recent performance, which has been the unexpected profit engine in the Fiat group.


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    • 1 Second Ago
  • 11 Comments
      telm12345
      • 2 Years Ago
      I really really like Marcchionne. He doesn't allow himself to get pushed around and is very focused on making the Fiat/Chrysler group a success. New blood (not necessarily in CEO guise) is exactly what GM and Ford need.
      • 2 Years Ago
      [blocked]
        rllama
        • 2 Years Ago
        But that would have been paid out of a special executive retirement plan, not the regular salary employees plan that was getting the buyouts. The salaried employees plan is most likely a government qualified plan, which involves caps on how much a benefit can be. (Though obviously paying him $20mil means 20mil less that they can put in to the normal pension fund)
      SloopJohnB
      • 2 Years Ago
      Hmmm.looks like Chrysler is going to be the strike target for the new UAW contract template.
      rlog100
      • 2 Years Ago
      Translation. We have no need to blow large amounts of cash just before the economy slides deeper in this recession.
      grandizer1
      • 2 Years Ago
      why isnt he talking about the alternitive work schedule he is alowing to be hammered on us...how chrysler hates family..by not letting us have time with family,freinds..children...no sleep...we have made great strides and chysler punishes us with taking our health, family,children and any sense of a normal life away...thanks that new chrysler purchase not gonna happen...lovingly the c shift
        AMG THIS
        • 2 Years Ago
        @grandizer1
        Would you rather be layed off? Work when the work is there and stock away that cash.
        nomadsto
        • 2 Years Ago
        @grandizer1
        Seriously? You should just be happy to have that job! Your company/job was almost dead! You sound like spoiled child. If you don't like your job just leave, your not a slave. And don't say you can't find somthing else, you've had years and years to figure out another career, but your to busy complaining to get up and do it.
      KyleR
      • 2 Years Ago
      That's because the Chrylser employees are too busy getting drunk and stoned at lunch to realize how screwed they'll be in 15 years down the line.
      • 2 Years Ago
      [blocked]