Chrysler to Offer Buyout Plans to 23,000 Hourly Workers
Chrysler confirms
to The Wall Street Journal that it will be making buyout offers to 23,000 hourly workers. The move is part of the company's continuing cost cutting which includes plant closings due to falling consumer demand for cars.
Employees have until Nov. 13 to accept the offer, Chrysler said in a statement. Special programs are also being offered at factories that are being closed as part of the bankruptcy process. The dates for those programs vary.
Separation dates are at the discretion of the company.
The buyouts come as Chrysler prepares to reveal its five-year product plan to the public during a press conference at its Auburn Hills, Mich.-based headquarters Wednesday. Chief Executive Officer Sergio Marchionne is expected to address how Chrysler will survive while it attempts to deliver new products to the market.
Chrysler has been cutting thousands of jobs since late 2007 as demand for its Chrysler, Jeep and Dodge products fall amid an economic recession in the U.S.
The cost cutting measures are part of the bankruptcy process. Chrysler filed for bankruptcy last April and Fiat now owns most of the assets. As part of the deal with the U.S. government, Chrysler extended the buyout program to more workers than would normally be eligible.
