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Retiree liabilities slow General Motor�fs momentum



General Motors reported that profits more than doubled in the second quarter of the year to $1.29 billion, but the good news wasn�ft enough to overcome analyst worries about the automaker�fs benefit liabilities. 



GM reported that total investments in its $70 billion pension fund fell 3% in the first six months of the year. Company officials stated that GM contributed $2.2 billion to its hourly pension plan in April and an additional $1 billion contribution to its long-term voluntary employees�f beneficiary association (VEBA) trust fund in June. 



The nation�fs No. 1 car maker pays pension benefits to some 451,000 people, more than double the number of GM�fs current workforce. CEO Rick Wagoner earlier this year told a group of Wall Street bankers that rising health care costs combined with pension funding obligations represent a long-term drag on profits that could undermine the company�fs stock price. 



With 1.2 million employees, retirees and dependents, GM�fs bill for health coverage is estimated at $4.2 billion last year. Shares of GM opened this morning at $45.40, down $2.52 since the company made its earnings announcement.