Chrysler's possible purchase by General Motors Corp. would create an entity with nearly $148 billion in retirement assets, making it the fifth-largest U.S. pension fund. Currently, Detroit-based GM is ranked sixth with $119 billion in pension assets as of Sept. 30; DaimlerChrysler Corp., Stuttgart, Germany, had $28.6 billion in U.S. retirement assets as of Sept. 30, according to an estimate by Pensions & Investments.
P&I sister publication Automotive News reported today that GM is negotiating to buy the Chrysler group. GM and Chrysler representatives declined to comment, according to Automotive News.
According to P&I data, GM had $98.6 billion in defined benefit assets and $20.4 billion in defined contribution assets as of Sept. 30. Its defined benefit plan had 29% of assets in U.S. equities; 20% international equities; 25% U.S. fixed income; 4% international fixed income; 5% private equity; 5% real estate; and 12% other. GM staff ran 12% of assets internally.
DaimlerChrysler had $22.5 billion in defined benefit assets and $6.1 billion in defined contribution assets as of Sept. 30, according to a P&I estimate. As of Dec. 31, 2005, DaimlerChrysler's non-German pension plans, which were primarily in the U.S., had 61% of assets in equities, 25% in fixed income, 7% in alternatives investments, 5% in real estate, and 2% in other investments, according to the company's 2005 annual report. Further details were not available by press time.