General Motors on Tuesday said in a US regulatory filing it had trimmed its future pension obligations by $US3.9bn and lowered its expectations of health care spending for retired workers by $19.3bn.
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The automaker said that it had cut estimates as 34,400 of its US hourly workers took buyouts and early retirement offers, Reuters reported.
The new forecast also reflects reduced health care benefits for factory workers and cuts in other benefits for salaried employees, GM reportedly said in the filing with the Securities and Exchange Commission.
Reuters noted that the automaker last week restated its net loss for the just-reported second quarter, increasing it by $200m to reflect a tax provision for the sale of its GMAC finance arm.
GM reportedly also said in the filing that the closing of the $14 billion deal to sell a 51% 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.
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By GlobalDataThe automaker added that it had raised its stake in GM Daewoo Auto & Technology to 50.9% from 44.6%, Reuters said.
It increased its investment in South Korea’s third-largest automaker after buying 16.6m newly issued shares of common stock in GM Daewoo for about $49m and purchasing 6.9m shares of the company from Suzuki Motor for about $21m, Reuters added.
