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

A few months ago, Mercedes-Benz promised that they will be treating everyone to a “big surprise” during the Monterey Car Week. And true enough, many of us were stunned as...
by - August 19, 2017
McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 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