Content provided in partnership with

Automotive Industry

Ford's Pension Underfunding Hit $7.3 Billion In 2002 - Brief Article

Autoparts Report, Jan 17, 2003

Ford Motor said that its U.S. pension fund was underfunded by $7.3 billion at the end of 2002 and that its pension costs would increase to $270 million in 2003. Ford said its worldwide pension under-funding totaled $14.5 billion. Its U.S. pension funds had a negative return of 9.7 percent in 2002 as U.S. stock markets suffered their third straight year of decline.

Ford said it was changing the assumptions for future returns on its U.S., Canadian and British plans to 8.75 percent from 9.5 percent. The $270 million pre-tax expense for 2003 would be $460 million higher than 2002 when Ford was still realizing carry-over gains from the plan from previous years.

Most Popular Articles in Autos: Service Slants; 2007 utility vehicle buyer's guide: Side-By-Sides are popular; here's who ...; Transmission considerations: beyond the manual gearbox; Buell Motorcycle engineering, innovation, & dedication: in an industry ...; 100 + 10: America's oldest automotive magazine celebrates its 110th year ...; More »

The company said it contributed $500 million to its plans in January and would contribute another $500 million in the first half of 2003 instead of 2004 as planned earlier. It also said it was still on track to produce a $9 billion improvement in profits by mid-decade, the target set in its turnaround plan launched last year after a $5.45 billion loss in 2001.

Automotive Industry

Ford's Pension Underfunding Hit $7.3 Billion In 2002 - Brief Article

Autoparts Report, Jan 17, 2003

Find Research Guides for:

Find Featured Titles for: Home & Garden

Most Popular Articles in Autos

Most Popular Publications in Autos