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
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.