US car giant General Motors (GM) has announced plans to reduce its pension obligations by $26bn (£17bn) by offering tens of thousands of retiring workers lump-sum payments.
The firm will also contract Prudential Financial to run ongoing pensions.
It said it would take a hit of $2.5bn to $3.5bn in its accounts in the second half of the year due to the changes.
GM’s current pension plans are under-funded and have hindered the carmaker’s recent recovery.
“These actions represent a major step toward our objective of de-risking our pension plans and will further strengthen our balance sheet and give us more financial flexibility,” said Dan Ammann, GM’s chief financial officer.