Government Motors - the gift that just keeps on givin'

Discussion in 'Politics' started by TGregg, Apr 15, 2010.

  1. TGregg


    GM's Pension: A Ticking Time Bomb for Taxpayers?

    General Motors Corp. may no longer be the world's biggest automaker, but it still operates the country's largest pension fund. The threat to its pension plans has always been an issue, butit took on a new urgency when GM disclosed April 7 that its plans were underfunded by more than $27 billion, with more than half of that being owed to U.S. workers and retirees. Across town, a post- bankrupt Chrysler faces its own pension shortfall. Moreover, a report last week from the Government Accounting Office (GAO) says the pension crisis in the auto industry could create an unprecedented crisis for the federal Pension Benefit Guarantee Corp., a government-sponsored organization to backstop company pensions.

    When the two automakers emerged from bankruptcy reorganization the pension problems were seen as a more distant issue, and presumably one that would be eased by economic growth. But the auto industry is facing a slow recovery, and neither the new GM nor the new Chrysler has produced a profit. Christopher Liddell, GM's new chief financial officer, has stopped short of predicting that GM will be profitable this year, while Chrysler CEO Sergio Marchionne is hoping Chrysler can break even this year. Both GM and Chrysler are also moving to build smaller vehicles, which have traditionally produced smaller profits. The pension funding crisis could begin in 2013, or before either company is fully profitable.
  2. Lucrum



    More political favors given to the unions, paid for with MY tax dollars.

    BTW is the the "hope" or the "change" Dumbo was preaching in 2008?
  3. Its great hope & change for the union members.
  4. Stop complaining Lucrum. Share your wealth! So what if you worked hard for it. Everyone else should get the same as you.

    (Does sarcasm translate well over the internet)?

  5. I'm self employed, what if I were quite keen to dump my pension obligations on the pbgc?