GM, Chrysler offer workers cash, cars to leave

GM, Chrysler offer workers cash, cars to leave

Tue Feb 3, 2009 12:38am
By Poornima Gupta

DETROIT (Reuters) - General Motors Corp (GM.N) and Chrysler LLC on Monday began offering a new round of retirement incentives including vouchers for cars as the automakers move to reduce workers and inventory.

GM will offer its U.S. hourly workers $20,000 in cash and a $25,000 voucher to buy a vehicle as an incentive to retire or leave the company, an official with the United Auto Workers union briefed on the plan said.

The No. 1 U.S. automaker declined to comment.

Chrysler’s program offers retirement-eligible workers $50,000 in cash and a voucher of $25,000 for a new Chrysler vehicle if they leave, according to a person with direct knowledge of the offers.

Workers who opt to leave Chrysler with no retiree health care benefits would get $75,000 and a $25,000 car voucher, the person said.

Chrysler confirmed that it was offering a new round of buyouts to workers that would be available until February 25.

Both GM and Chrysler are under pressure to cut labor costs further under the terms of a $17.4-billion U.S. bailout extended to the two struggling automakers.

Under the terms of that emergency lending, Chrysler and GM face a February 17 deadline to show how they can cut debt, labor costs and other expenses in order to be viable in a deeply depressed market for new cars and trucks.

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