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GM to Put $13.5 Billion Into Pension Fund

IN BRIEF / AUTOS

September 11, 2003|From Bloomberg News

General Motors Corp. said it would contribute $13.5 billion to its underfunded pension fund when it finishes negotiations with the United Auto Workers union, Chief Financial Officer John Devine said.

The automaker expects to make the contribution to the U.S. fund, which was underfunded by $19 billion at the end of last year, shortly after the talks end, Devine told reporters at the International Motor Show in Frankfurt, Germany.

The UAW contract expires Sunday.

GM plans to generate $20 billion in cash this year, including funds from a $13.5-billion bond sale in July, compared with about $10 billion in 2002. The company had said most of the $13.5 billion would be contributed to the underfunded pensions.

Shares of Detroit-based GM fell 72 cents to $40.89 on the NYSE.

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