Chrysler LLC said Monday it planned to offer a new round of buyouts to all its blue-collar workers as the struggling automaker braced for further troubles ahead.
Chrysler spokeswoman Mary Beth Halpri said that the number three automaker had been set to make the offer in December and January, under an agreement with the United Auto Workers Union.
But she said that because Chrysler had suspended production for extended periods in December and January, “the program offerings are being rolled out now.”
Workers have until February 25 to decided whether to accept the buyouts, which include up to 75,000 dollars cash and 25,000 dollars to buy a vehicle to workers if they leave the company without retiring.
The incentive for early retirement is 50,000 dollars cash and a 25,000 dollar voucher.
Some 5,000 salaried employee or 25 percent of Chrysler?s white-collar workforce accepted buyouts in November.
The struggling company is under intense financial pressure, needs both the help from the US Treasury and from a planned alliance with Italian automaker Fiat if it it to survive, analyst say.
“Preliminary reports appear to indicate a dramatic weakening of global automotive demand continues to damage profitability and financial strength of nearly all major automakers,” observed a new report from the rating agency Standard & Poor's.
Chrysler said it is making progress in defining the the terms of its alliance with Fiat. Chrysler Chairman Robert Nardelli said no US taxpayer funds would go to Fiat under the arrangement.
The alliance would give Chrysler immediate access to substantially all Fiat group vehicle platforms, which would complement Chrysler's current product lineup with fuel-efficient, environmentally friendly small cars and powertrain technology, saving Chrysler years of development time and billions in costs, Nardelli said.
Chrysler also would be able to increase its sales of Dodge, Chrysler and Jeep products outside the US by using Fiat's global distribution system.
As part of Chrysler's viability plan submitted to Congress, the company requested a seven billion dollar bridge loan.
The US Treasury awarded the company four billion dollars with the remaining three billion to be distributed pending the interim review of Chrysler's viability plan on February 17, and final review on March 31.
