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To: SmoothTalker
I've been following GM's stock this year.

One thing I'm looking at is Delphi, and what looks to be their using the Pension account to fund their continuing operational deficit - if I'm not mistaken, GM is on the hook for the pensions of Delphi workers (as Delphi was spun off from GM).

To wit, in the Monthly Operating Reports for May and June of this year, an increase of $1.6B was recorded against Pension Obligations (carried under "Liabilities Subject to Compromise" in the Balance Sheet), whereas $1.6B from the "Pension and other postretirement benefit expenses" was used to partially offset the $-1.8B net loss in the June Statement of Cash Flows.

If my admittedly facile understanding of this issue is correct, then decreased sales at GM aren't the only thing the General has to be worrying about.

(Anybody?)

7 posted on 08/01/2006 5:46:28 PM PDT by Hoplite
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To: Hoplite

As I recall, GM was reported to have an unfunded pension liability in the neighborhood of 10-15 *billion* dollars as far back as the eighties. This during a time of robust sales. No one seemed to wonder then why none of the profits were being plowed into this snowballing liability.


12 posted on 08/01/2006 5:55:51 PM PDT by ChildOfThe60s (If you can remember the 60s...you weren't really there.)
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