General Motors plans to sell $10 billion in bonds and convertible debentures this week to fund its pension liabilities.
The auto maker said it would take advantage of low interest rates to refinance part of its US pension deficit, which stood at $19.3 billion at the end of 2002.
GM contributed $5.8 billion alone to its pension scheme last year. The company recently announced it would need to contribute around $15 billion by 2007.
“We are acting quickly to take advantage of the favourable capital markets environment.
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