GM Injects $4 Billion Into U.S. Pension Plans

Dec. 2, 2010
Company says the funding is a step toward 'our goal of fully funding our pension plans and achieving minimal debt'

General Motors said on Dec. 2 that is will increasing funding into ailing pension funds for its U.S. employees. "This pension contribution puts us another step closer to our goal of fully funding our pension plans and achieving minimal debt," Chris Liddell, GM vice chairman and chief financial officer.

"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," he said.

The previously announced cash contribution will provide $2.7 billion to the hourly pension plan and $1.3 billion to the salaried plan.

At the end of 2009, all of GM's U.S. pension plans were underfunded in total by $17.1 billion, the company said.

On the day of the IPO, Liddell said the company's priority was to repay all its debts.

Copyright Agence France-Presse, 2010

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