Report: GM Canada pension fund well short

TORONTO, Nov. 19 (UPI) -- General Motors Canada has a massive pension shortfall that could require a government bailout in the event of bankruptcy, senior officials said in Toronto.

In a meeting with the Globe and Mail's editorial staff, senior GM executives were unable to say how short the pension plan is, as the last valuation was done a year ago before world stock markets plunged. Back then, the shortfall was $4.5 billion, the officials said.

However, the report said the auto maker is in compliance with all legal Canadian requirements although officials with the province of Ontario will soon be examining the pension fund to determine provincial liability in the event of a bankruptcy, the report said.

Sym Gill, director of pensions and benefits for the Canadian Auto Workers union told the newspaper the unionized plan for Ford Motor Co. of Canada Ltd. employees had a solvency deficiency of about $900 million in January, Gill said. Chrysler Canada's most recent report was in May 2007 at which time the plan was fully funded, he said.