General Motors (NYSE:GM) made a $4 billion voluntary cash contribution to its underfunded pension program this week, the company said in a statement on Thursday.
GM said that $2.7 billion of the $4 billion contribution will go to the company’s hourly workers pension plan with the rest going to the company’s salaried plan. The contribution had been previously announced.
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“This pension contribution puts us another step closer to our goal of fully funding our pension plans and achieving minimal debt,” said GM’s vice chairman and CFO Chris Liddell in a statement.
GM’s pension obligations are currently underfunded by $17.1 billion, an amount that has concerned analysts and investors for years. Now profitable and a publicly traded company, GM is attempting to pay off its obligations well before it's required to in part to boost investor sentiment.
GM shares were down 0.2% on Thursday to $34.73, trailing the broader market.