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GM, PSA haggle over $9 billion pension gap, report says


jpd80

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GM, PSA haggle over $9 billion pension gap, report says
February 24, 2017
David Welch and Francois De Beaupuy

Bloomberg via AutoNews.com

As 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.

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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 by jpd80
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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: :hysterical:

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