jpd80 Posted February 24, 2017 Share Posted February 24, 2017 GM, PSA haggle over $9 billion pension gap, report says February 24, 2017David Welch and Francois De Beaupuy Bloomberg via AutoNews.comAs General Motors tries to hammer out a deal to sell its long-struggling Europe business to PSA Group, one multibillion-dollar issue looms large: how the companies will manage an underfunded pension plan for retirees.GM’s pension plan for Opel and Vauxhall retirees is underfunded by about $9 billion, according to data compiled by Bloomberg News. PSA would like GM to keep a big chunk of that responsibility, if not all of it, said two people familiar with the discussions, who asked not to be named because talks are private.There’s a lot at stake for both companies. GM would like to exit Europe and doesn’t want to shoulder the entire pension burden for a business it would no longer own, one of the people said. PSA is willing to take on GM’s troubled business but would prefer to avoid responsibility for the retiree benefits once a deal is done.CONTINUE AT LINK ABOVE 1 Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted February 24, 2017 Share Posted February 24, 2017 Hmm. So, GM's shortsightedness vis a vis their pension plan has collided head-on with their shortsightedness vis a vis their EU ops. 4 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted February 25, 2017 Author Share Posted February 25, 2017 (edited) Chickens coming home to roost when GM wants to go do other things.... Looks like that war chest of cash might take a collossal hit to get this done, no wayis PSA going to buy Opel- Vauxhall for $2 Billion and take on $9 billion in legacy costs....gM has to make good cut s losses and move on. Meanwhile Ford Europe has turned into a nice money earner for Ford motor, the two European divisions couldn't be further apart. I can only imagine that GM has had its eyes set on making more money in US and China while not controlling costs elsewhere... This is GM pretending to be as well managed as Ford but failing miserably. Edited February 25, 2017 by jpd80 1 Quote Link to comment Share on other sites More sharing options...
bzcat Posted February 27, 2017 Share Posted February 27, 2017 (edited) Wait, GM didn't shed these liability in Europe when they were in bankruptcy? Edit: nevermind, it is the unfunded portion Edited February 27, 2017 by bzcat Quote Link to comment Share on other sites More sharing options...
mustang let back Posted February 28, 2017 Share Posted February 28, 2017 Chickens coming home to roost when GM wants to go do other things.... Looks like that war chest of cash might take a collossal hit to get this done, no wayis PSA going to buy Opel- Vauxhall for $2 Billion and take on $9 billion in legacy costs....gM has to make good cut s losses and move on. Meanwhile Ford Europe has turned into a nice money earner for Ford motor, the two European divisions couldn't be further apart. I can only imagine that GM has had its eyes set on making more money in US and China while not controlling costs elsewhere... This is GM pretending to be as well managed as Ford but failing miserably. Well said. :happy feet: Quote Link to comment Share on other sites More sharing options...
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