Friday, April 9, 2010

Just In Case You Thought the Chunks of Money Thrown at the Auto Industry Solved Their Financial Crisis...

The Government Accountability Office is out with this news in a new report:
...according to GM's projections utilizing valuation methods defined under PPA, large cash contributions may be needed to meet its funding obligations to its U.S. pension plans beginning in 2013...As of October 1, 2008, GM had about $36 billion of credit balance in its hourly plan and about $10 billion in its salaried plan. However, once these credit balances are exhausted, GM projects that the contributions needed to meet its defined benefit plan funding requirements will total about $12.3 billion for the years 2013 and 2014, and additional contributions may be required thereafter...Similarly, Chrysler's management expects that contributions to meet minimum funding requirements may begin to increase significantly in 2013, but are projected to be relatively minimal until then.,
(Via Megan McArdle)

1 comment:

  1. "...additonal contributions..."?? What kind of language is this? Clearly the govt. is warning of more subsidies at taxpayer expense. And one can only describe the govt.'s recent attack on Toyota as a politicians idea of a marketing program. Government Motors uber alles!!