GM Pays $4 Billion to Pension Plan
DETROIT (
) --
General Motors
(GM) - Get Report
said it has made a $4 billion cash contribution to its pension plans.
The contribution, previously announced, includes $2.7 billion to the hourly plan and $1.3 billion to the salaried plan. As of Dec. 31, 2009, the plans were underfunded by $17.1 billion. The plan's funding obligation is due to be recalculated at the end of the current year.
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The contribution is part of a
to reduce its debt. On Wednesday, the company said it will
pay down the revolving credit facility
of Korean subsidiary Daewoo.
"This pension contribution puts us another step closer to our goal of fully funding our pension plans and achieving minimal debt," said CFO Chris Liddell in a prepared statement. "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."
-- Written by Ted Reed in Charlotte, N.C.
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Ted Reed