What happened to Daimler’s commitment to provide a $1 billion guarantee if the pension plans are terminated?
As announced on April 27, Daimler reached an agreement on its separation from Chrysler where it has agreed to pay $200 million into Chrysler’s pension plans on the date of the execution of a definitive agreement, and in each of the next two years, for a total contribution of $600 million. The existing pension guarantee of $1 billion to the PBGC will be reduced to an amount of $200 million and remain in place until August 2012.
