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GM is taking on billions of dollars in debt despite recent
price discounts and no-interest financing offers. The reason?
Mounting pension and health care costs for its retired workers.
The company’s pension is $19 billion underfunded, and
the gap is threatening to widen as drug prices and health
care costs grow ever higher. While the pension costs are forcing
GM--and by default, other U.S. automakers--to slash prices,
ultimately vehicle prices will rise to help automakers improve
profits and stay competitive.
The
Washington Post June 24, 2003
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