Chrysler offers staff as much as $75,000 to quit
DETROIT (Bloomberg) — Chrysler LLC, seeking to eliminate 25 percent of its salaried workforce by year-end, is pressing those employees to take buyouts or early retirement by today to help reach its goal without firings.
Chrysler said last month it wants to trim about 4,300 jobs, and set November 26 as the deadline for workers to give notification of their plans. The Auburn Hills, Michigan-based automaker is making the offers as sales plunge and it pursues about $7 billion in US aid to keep operating.
Efforts to pare costs have taken on more urgency after Congress requested that Chrysler, General Motors Corp. and Ford Motor Co. present plans by December 2 that prove they will be able to survive and pay back any federal loans.
"It probably skews more to people taking it than less," said Van Conway, partner in restructuring firm Conway MacKenzie & Dunleavy in Birmingham, Michigan, referring to the buyout. "They are going to fill the hopper up."
Chrysler is offering incentive packages of as much as $75,000 cash and health-care coverage for a limited period as well as a $25,000 coupon to purchase a Chrysler vehicle.
The final number accepting buyouts won't be known until December 1 because workers have a few days to change their minds, said Shawn Morgan, a spokeswoman for the automaker.