Ford Says Pension Underfunding Is Reduced

December 2, 2002 ( - Ford Motor Co said its US pension plan underfunding has declined by about $1 billion from the $6 billion projected earlier.

The recovery is being attributed to improvements in world equity markets, according to Ford Vice President and Treasurer Malcolm Macdonald.  With the recovery in markets, that underfunding has diminished, I don’t know the latest numbers, but my guess is it’s by over a billion dollars,” Macdonald said during a meeting with institutional investors in Geneva.

Macdonald also said that Ford plans contributions of about $500 million to its pension plan over the next two years and will take “a modest charge to profits” next year because of pension liabilities.