Washington is proposing new rules regarding the funding of pension plans, including how fast underfunding plans must be brought back into balance. This reform has automakers and suppliers rather scared, as the auto industry is collectively thought to have underfunded pension liabilities of $45-50 billion (that may be an gross underestimate, given what GM alone might owe). Any plan that forces those plans to be funded more quickly will cause a further erosion of profits - you know, profits that don't currently exist. The federal Pension Benefit Guaranty Corp. was created to cover such liabilities in case of default, but it also faces a huge underfunding situation that could leave us taxpayers on the hook for tens of billions of dollars, thanks to pie-in-the-sky return-on-investment assumptions and poor business decisions. Interestingly (and ironically) enough, the PBGC was created after the fall of Studebaker-Packard - I didn't know that until reading the linked article.
Hi! We notice you're using an ad blocker. Please consider whitelisting Autoblog.
We get it. Ads can be annoying. But ads are also how we keep the garage doors open and the lights on here at Autoblog - and keep our stories free for you and for everyone. And free is good, right? If you'd be so kind as to whitelist our site, we promise to keep bringing you great content. Thanks for that. And thanks for reading Autoblog.
Here's how to disable adblocking on our site.
- Click on the icon for your Adblocker in your browser. A drop down menu will appear.
- Select the option to run ads for autoblog.com, by clicking either "turn off for this site", "don't run on pages on this domain", "whitelist this site" or similar. The exact text will differ depending on the actual application you have running.
- Refresh the Autoblog page you were viewing. Done!
You still haven't turned off your adblocker or whitelisted our site. It only takes a few seconds.