Mexican Media Brands
GM Will Sell $2 Billion in Notes to Bolster Pension Fund
General Motors Co. says it will issue $2 billion in 20- and 30-year notes to bolster the value of assets that cover its obligation to some 360,000 hourly workers in the U.S.
#economics
Share
General Motors Co. says it will issue $2 billion in 20- and 30-year notes to bolster the value of assets that cover its obligation to some 360,000 hourly workers in the U.S.
The company reported in a regulatory filing that its U.S. pension obligation at the end of 2015 totaled $71.5 billion and was underfunded by $10.4 billion.
Issuing the senior unsecured notes will enable the company to make a discretionary contribution to the plan. GM tells Bloomberg News it expected a return of more than 6% on the plan’s assets last year but earned only 1%.
RELATED CONTENT
-
Tariffs on Autos: “No One Wins”
While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.