General Motors Co., the largest U.S. automaker, said it expects to cut its pension obligation by $26 billion by offering lump-sum payments to about 42,000 retirees and shifting its plans to a unit of Prudential Financial Inc.
“These actions represent a major step toward our objective of de-risking our pension plans and will further strengthen our balance sheet and give us more financial flexibility,” Dan Ammann, GM’s chief financial officer, said today in a statement.
GM rose 0.2 percent at 1:55 p.m. The shares had risen as much as 5.1 percent, reversing losses from earlier in the day when it reported an 11 percent increase in U.S. vehicle sales in May. The average of 10 analysts’ estimates was for a 17 percent gain. The shares gained 9.5 percent this year before today.