just-auto.com

US: Chrysler offers incentives for fast exit

By just-auto.com editorial team | 29 October 2008

Chrysler is offering white-collar workers up to US$75,000 cash and vehicle purchase vouchers worth up to $25,000 if they leave by 30 November.

The automaker announced the latest round of cuts to employees by letter last week. About a quarter or 5,000 employees would be axed.

Chairman and CEO Bob Nardelli said the cuts were on top of those previously announced and would be accomplished through "socially responsible" programmes, including voluntary retirements and salaried employee buyouts.

"These new programmes will feature enhanced benefits, including both cash and new vehicle vouchers," he said in the letter.

A Chrysler spokesman confirmed the programmes to Reuters but declined to give incentive details.

Chrysler is offering buyouts to every salaried employee for the first time since 1991, a person familiar with the offers told the news agency.

Employees began to receive specific offers last Friday and will continue to receive them until 7 November, the spokesman told Reuters.

Chrysler still expects to make some involuntary cuts by the end of December, depending on the buyout rate, the report added.

Chrysler reportedly is offering three levels of incentives to employees to leave the company - retirement, an expanded early retirement and outright buyout.

Incentives vary by programme.