DaimlerChrysler Corp. dropped its expected rate of return on its global pension plan assets in 2003 to 8.5% from 10.5%, according to consolidated financial statements released yesterday by the company in both Auburn Hills, Mich., and Stuttgart, Germany.
Timothy S. Krause, senior financial specialist at DaimlerChrysler, said the company contributed a total of $1.1 billion to its global pension plans at the end of 2002. Company officials have not said if they expect additional contributions to be required in 2003. Mark A. Schmid, director of asset management for the U.S. pension plans, did not return a call by press time about how the additional contribution will be invested.
As of Dec. 31, worldwide pension assets totaled $23.9 billion; DaimlerChrysler had pension obligations of $13.6 billion and liabilities of $7.4 billion, according to the automakers 2002 annual report.