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Chrysler Mum on Number of Workers Taking Buyout Offers So Far


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DETROIT February 19, 2008; Dee-Ann Durbin writing fot the AP reported that Chrysler LLC doesn't plan to announce the number of workers taking its latest buyout offers for several more weeks despite the passing of a deadline for thousands of Detroit-area workers to make a decision, a company spokeswoman said Tuesday.

As of Monday, hourly workers at 11 of Chrysler's U.S. facilities had been scheduled to decide on the offers, which include a $70,000 incentive payment to retirement-eligible workers or $100,000 to workers who agree to leave without future pension or health benefits.

Four assembly sites -- Toledo North in Toledo, Ohio; St. Louis North and South in Fenton, Mo.; Belvidere, Ill.; and Jefferson North in Detroit -- had a January deadline to make decisions, while seven additional plants in Michigan had a Monday deadline.

Chrysler spokeswoman Michelle Tinson said workers at other plants are still considering the buyouts. Workers at five plants in Indiana and Wisconsin have until Feb. 25 to make a decision, while workers at an assembly plant in Newark, Del., which is scheduled to close next year, have until March 10. Buyout deals are still being negotiated for Chrysler's Mopar parts unit, Tinson said.

Chrysler, which is in the midst of a restructuring after a majority stake in the automaker was sold last summer to private equity firm Cerberus Capital Management LP, announced in November it planned to cut up to 12,000 jobs, including 8,000 to 10,000 hourly and 2,000 salaried jobs.

The cuts came in addition to 13,000 layoffs Chrysler announced in February 2007, including 11,000 hourly and 2,000 salaried workers. About 6,400 hourly workers had left the company under that program as of June, but additional retirement packages could still be rolled out under than program, which was scheduled to run through 2009.

Ford Motor Co. and General Motors Corp. announced similar buyout programs for tens of thousands of hourly workers represented by the United Auto Workers union.