Ford Motor Co. expects to contribute $1.5 billion to its worldwide pension plans this year, while General Motors Corp. does not expect to have to make any pension contributions over the next three years, according to separate financial reports the two automakers issued today.
Dearborn, Mich.-based Ford made $1.7 billion in pension contributions in 2008; GM, Detroit, made no contributions in 2008 or 2007.
Fords U.S. pension plans investment return was -10% in 2008, the report said. For the 10 years ended Dec. 31, Fords U.S. plans returned an annualized 6%, down from the 8.84% return for the 10 years ended Dec. 31, 2007.
Fords U.S. pension plans had $37.4 billion in assets as of Dec. 31. Fords pension expense was $1.01 billion in 2008, down from $2.01 billion the previous year.
GMs combined U.S. hourly and salaried pension funds lost 11% on investments in 2008, compared to its 10.7% return in 2007, according to GMs 2008 financial report.
The GM U.S. hourly and salaried pension funds had a combined $84.2 billion in assets as of Dec. 31. Its pension expense totaled $3.19 billion in 2008, triple the $1.11 billion in 2007.
GM also increased by $660 million a reserve for Troy, Mich.-based Delphi Corp.s pension obligations, the report added.