GM trims future pension obligation by $3.9 bln

[doh]

http://yahoo.reuters.com/news/articl...mktNews&rpc=44

DETROIT, Aug 8 (Reuters) - General Motors Corp. (GM.N: Quote, Profile, Research) on Tuesday said it had trimmed its future pension obligations by $3.9 billion and lowered its expectations of health care spending for retired workers by $19.3 billion.

The world's largest automaker, which is in the midst of a sweeping restructuring, said in a U.S. regulatory filing that it had cut estimates as 34,400 of its U.S. hourly workers took buyouts and early retirement offers.

The new forecast also reflects reduced health-care benefits for factory workers and cuts in other benefits for salaried employees, GM said in the filing with the Securities and Exchange Commission.

The automaker last week restated its net loss for the just-reported second quarter, increasing it by $200 million to reflect a tax provision for the sale of its GMAC finance arm.



GM also said in the filing that the closing of the $14 billion deal to sell a 51-percent stake in GMAC to an investor consortium led by hedge fund Cerberus Capital Management could be delayed until 2007 due to difficulties in obtaining the required regulatory approvals.

The automaker said in the filing that it had raised its stake in GM Daewoo Auto & Technology Co to 50.9 percent from 44.6 percent.

GM increased its investment in South Korea's third-largest automaker after buying 16.6 million newly issued shares of common stock in GM Daewoo for about $49 million and purchasing 6.9 million shares of the company from Suzuki Motor Corp.

[tgagneguam]

GM increased its investment in South Korea's third-largest automaker after buying 16.6 million newly issued shares of common stock in GM Daewoo for about $49 million and purchasing 6.9 million shares of the company from Suzuki Motor Corp.

Second time around's the charm?

The original $49 million paid for 16.6 million shares seems like a steal in retrospect, no?

[GM_Fanatic]

Good to see the savings as a result of the buyouts! It is also a very smart move to up the stake in Daewoo, they have already been pivotal in GMs global turnaround, and I think they will only continue to be even more important.

[W.A.F.U.]

I wonder if they have a clause that allows them to repurchase the stake in GMAC in a number of years?

[New_Mexico_Sunset_on_Rt66]

Is that $4B per year?