Chrysler won’t offer white-collar pension buyouts, CEO Sergio Marchionne says

Article by Christian A., on June 7, 2012

Chrysler Group won’t be going on the same path as both General Motors Co. and Ford Motor Co. in offering white-collar pension buyouts. Chrysler CEO Sergio Marchionne said that there wasn’t any need for it to do so. Analysts said that this will reduce the bulky pension obligations, which increased to record levels in 2011.

This is something that investors are very worried about. Ford’s offer will be extended to 98,000 employees. On the other hand, GM will make the offer to about 42,000 workers to trade their monthly pension checks for a one-time lump-sum payout. U.S. automakers have looked at pension costs with a lot of worry since the economic downturn a handful of years ago as they have been losing their market shares to foreign-based automakers in the U.S.

In its annual filing, Chrysler said that 2011 ended with an almost $32 billion pension obligation and that it was $6.5 billion short for its pension plans. At the end of last year, Chrysler’s market value was around $7.5 billion. Chrysler has slightly more than 130,000 retirees. Of this figure, around 30,000 are former employees who had an annual salary while the remaining ones are retired hourly workers who the UAW represents.

If you liked the article, share on:

Comments

Recommended

Not a few agree that the Volkswagen Polo news a styling overhaul. While this supermini still looks good as it is now, the latest facelift was around three years. With...
by - April 27, 2017
They say that when the going gets tough, the tough get going. That’s what Harvey Payne did with his Chevrolet Bolt. Ever since he bought it, it had been experiencing...
by - April 27, 2017
What defines a coupe? Well, according to the dictionary, “it is a car with a fixed roof and two doors”. Ok, now that it is clear, when does one not...
by - April 27, 2017
Back in 2013 was when the first hot hatch was released, that was the original A45 by Mercedes-AMG, carrying a hand-built 2.0 liter M133 turbo mill. It was then then...
by - April 27, 2017
BMW dealers have a problem, a good problem. The demand for the 2017 BMW 5 Series is very high, they cannot attend to all the customers. But actually, supplies are...
by - April 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries