GM, Chrysler Said to Offer New Union Buyouts as Sales Slow
By Jeff Green and Mike Ramsey
Feb. 2 (Bloomberg) --
General Motors Corp. and Chrysler LLC, propped up with $13.4 billion in emergency federal loans, are offering new buyout programs to factory employees to reduce labor costs as sales slow.
GM’s program consists of a $25,000 voucher to buy a new auto and $20,000 in cash to employees who are eligible to retire or ineligible
United Auto Workers members willing to quit, said a UAW official, who quoted from a letter sent to unions and didn’t want to be identified because the offer isn’t public yet.
The largest U.S. automaker also will offer early retirement to workers at least 50 years old with 10 years’ service, the official said. GM spokesman
Tony Sapienza had no comment.
Chrysler confirmed it is offering buyouts to its 26,800 U.S. hourly workers from today through Feb. 25 without giving details.
The buyout offers were delivered to local presidents today from the UAW’s national office, said another union leader, who also didn’t want to be named because the specifics haven’t been announced.
Chrysler is offering a $50,000 cash payment and a voucher for $25,000 to purchase a new vehicle for workers who are eligible to retire, said the UAW leader. Workers not eligible for retirement are being offered $75,000 in cash plus a $25,000 voucher, the union leader said.
Workers employed at now-closed plants near St. Louis and in Newark, Delaware, are being offered more, the union official said.
Trade publication Automotive News reported the Chrysler buyout earlier today.
To contact the reporters on this story:
Jeff Green in Southfield, Michigan, at
jgreen16@bloomberg.net;
Mike Ramsey in Southfield, Michigan, at
mramsey6@bloomberg.net