Healthcare and VEBA are magnificently complex.
I am not hopefull that will work out dandy either.
GM got better terms than Ford though.
But in a nutshell healtcare liabilities were transferred to this new entititiy,VEBA.
Auto Companies pay set scheduled payments into them.
VEBA invest the money,grows the nestegg and shops for the best deal in healthcare.
My guess is if VEBA goes broke they ask the Feds for a bailout.
And that is Ford,GM and Chrysler UAW employees.
I respectfully disagree , given Fords liability is essentially in 2 notes, A and B and Common Stock and their latest payment. As I understand it, it is done other than these Notes and the Warrants the UAW can exercise. It looks a lot different on Fords Balance Sheet and the stock showed it the last 2 days. Chrysler and GM at this point, their liability is still huge no matter how you slice their deals GM owns 17% so they pay themselves and the UAW owns 55% of Chrysler for their VEBA if my memory is correct. I do not know how you get them funded with no revenues and capital. It is a Fiat Organization (no pun intended) with uncle sugar paying the bills. Tangential is how the UAW runs it.