[SolidSupplySide]

GM also holds America's largest private pension obligation.

GM's pension obligation is $3 BILLION overfunded. They don't need to make a contribution through the end of the decade.

This article is alarmist "global warming" type stuff.

[KC_for_Freedom]

It may be premature to call GM almost bankrupt. A lot of things the company can do and will try in the meantime. However schwab had negative credit ratings out fot both GM and Ford. GM stock is an outright sell.

My last company, Lockneed Martin went through a period wher pensions were reformed and health care costs began to be sharred between employee and company. This is the future for GM. It was not fun, and people on medicare have a better program for now. (With the average family paying half their medical costs.) What this article says is the chickens will one day come home to roost.

In the meantime, I will let my GM bonds cash out and purchase some healthcare company bonds.

[BurbankKarl]

GM is worth 27 billion...they have outstanding debt well in excess of 100 billion.


>>>>GM's pension obligation is $3 BILLION overfunded. They don't need to make a contribution through the end of the decade.

[carl in alaska]

GM is in trouble in the long run. They make all their profits off of trucks, SUV's, luxury cars, and car financing. Their costs are totally uncompetitive in the mid-sized and small car market. Now the trucks, SUV's, and Cadillacs are selling poorly because of high gasoline prices. Gasoline prices will continue to rise in the next 10-20 years and GM is not going to be able to make any profits without some serious cost-cutting. They're in trouble and they can burn up most of that $35 billion in cash within five years. That said, I think they will be able to negotiate some cost reductions with their unions and salaried workers and they probably won't go bankrupt. But if their workers are obstinate, it could happen.

[hubbubhubbub]

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