A brief look at the latest VW diesel scandal news, including new investigations in Canada and Germany and running the numbers on how bad the pollution is.
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
General Motors is moving to reduce the company's pension costs by $26 billion. The automaker is offering around 42,000 of its salaried retirees and surviving beneficiaries a one-time lump-sum payment in lieu of their current monthly benefit. In addition, GM plans to shift its salaried pensions to Prudential Insurance Co. of America. All told, the move will cost the manufacturer between $3.5 billion and $4.5 billion, including funding the plan and purchasing an annuity contract from Prudential. G
General Motors will freeze the defined benefit pension plans of 19,000 workers on Sept. 30, 2012, shifting them instead into 401(k) plans. Affected workers were all hired before 2001 and are salaried employees. Hourly workers are not affected by this change.
The Detroit News is reporting that a federal judge has thrown out a portion of the lawsuit brought against the federal government by Delphi retirees. The former employees of the automotive supplier brought suit against the federal government after their pensions were terminated in bankruptcy proceedings. U.S. District Judge Arthur Tarnow dismissed claims against the U.S. Treasury Department, Timothy Geithner, the auto task force, Steven Rattner and Ron Bloom, though the judge did allow the lawsu
The Detroit Three's 267,000 hourly retirees will soon receive a COLA (cost of living allowance) of $700 each to cover the cost of inflation; an annual tradition that arrives in time for the holiday season. The 72,000 surviving spouses will also be rewarded with up to $455 to help with rising costs.
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.
There's $77 billion owed to the pension plans contributed to by auto industry manufacturers and partner companies and we're to assume that at least seven billion of that is owed by Ford to the UAW's Voluntary Employment Benefit Association. The way Ford is going, it looks likely to pay that off without needing unsavory assistance. When it comes to General Motors' and Chrysler's obligations over the next five years, though, the Government Accountability Office has warned that Uncle Sam still need
Visteon, the automotive supplier currently going through bankruptcy proceedings, is seeking to rid itself of pension obligations for 21,000 current workers and retirees. It wouldn't mean the end of pensions for the workers, but the payments would be taken over by the Pension Benefit Guaranty Corporation (PBGC), and that would mean diminished benefits.
With General Motors in bankruptcy, it was only a matter of time before pensions came under scrutiny. The Detroit News is reporting that GM CEO Fritz Henderson has confirmed that executive pensions beyond $100,000 per year will be cut by two-thirds. Recently defenestrated boss Rick Wagoner will likely take the biggest hit of all – he was supposed to receive $22 million over five years as part of his retirement package, but that number will reportedly drop by up to $15 million.
A court filing by the legal firm Jones Day estimates that 38,500 Chrysler workers will lose their jobs if the bankrupt automaker fails to quickly form an alliance with Fiat SpA and is forced to liquidate. In addition, if the deal with Fiat is rejected Chrysler LLC employees will lose $9.8 billion in benefits and $2 billion in pension payments, according to the legal team.
According to a story from The New York Times, the Treasury Department and Chrysler are readying Chapter 11 bankruptcy documents for filing as early as next week.
The much ballyhooed meeting between domestic auto industry leaders and U.S. lawmakers came and went today, with the net-net being that the Capitol gang has pledged to work with the manufacturers 'as partners.'