With many automotive companies offering pension buyouts, it is surprising to see one company announce it isn’t necessary and everyone will be paid out as intended. GM declared it would be attempting to relieve itself of $134 billion pension liability.
Ford is believed to be following suit by offering pension buyouts. They are speculated by auto analyst Adam Jonas of Morgan Stanley to be “..watching with interest what GM has accomplished”.
Chrysler on the other hand, is standing tall. Taking leads in sales around the globe, continuing to remain steadily pushing forward, and their CEO has stated pension buyouts are not a necessity.
Sergio Marchionne, Chrysler CEO, was quoted as saying, “There is no need for us to do that.”, in regards to pension buyouts. If numbers alone were not enough to solidify Chrysler as a top contender for 2013 and years to come, surely their having no problems paying on pension plans says something about them over other auto manufacturers.
The remaining eligible salaried retirees at GM can make the decision to take the lump sum up until July 20, 2012. That may be a smart move, considering the stock has been on a consistent decline.