General Motors Co. will continue to be responsible for the majority of the European pension plans of its subsidiary Opel/Vauxhall regardless of their funded status, following the subsidiary's sale to PSA Group, said a GM news release Monday.
Only German Actives Plan, Russelsheim, and selected smaller plans will not remain in General Motors' custody under the terms of the deal, but will be transferred to PSA, according to the news release. The U.S. carmaker will pay €3 billion ($3.1 billion) to PSA for the full settlement of transferred pension liabilities. The details of the pension funds as well as their sizes could not be learned by press time.
General Motors and PSA announced a transaction Monday under which GM's subsidiary Opel/Vauxhall and subsidiary General Motors Financial Co.'s European operations will be sold to PSA in a €2.2 billion deal. The deal will close before the end of 2017.
General Motors reported $13 billion in non-U.S. pension plan assets and $24 billion in liabilities as of Dec. 31, according to its recently filed 10-K with the Securities and Exchange Commission. Further breakdowns were not provided.
Opel's spokesman was not able to comment further on the implications of the transaction on the pension funds by press time.