Chrysler Agrees To Buyouts with UAW

AUBURN HILLS, Mich., Feb. 27, 2007 -- Chrysler Group and the UAW today agreed to two special programs that will provide retirement and separation incentives for the Company's bargaining-unit employees in the United States as part of the Chrysler Group's Recovery and Transformation Plan.

The negotiated programs include an Incentive Program for Retirement (IPR) with $70,000 cash lump-sum amount for employees with 30 or more years of credited service, or who meet a combination of age and years-of-service eligibility, and an Enhanced Voluntary Termination of Employment Program (VTEP), which provides a lump sum payment of $100,000 for employees with at least one year of credited service.

A letter outlining the plans was sent to affected employees Feb. 27.