Chrysler exceeds buyout projections

Josee Valcourt / The Detroit News - -

DaimlerChrysler AG's Chrysler Group -- amid a turnaround effort that calls for shedding 9,000 U.S. hourly positions over three years -- received more buyout applications than it needed at affected plants.

"Corporate wide, we have exceeded our original projections," said Chrysler spokeswoman Michele Tinson. She declined to elaborate.

Workers in Detroit had until April 16 to determine if they wanted to take the automaker up on the buyout offer. Deadlines varied at other sites, with the latest on April 23 for St. Louis North and South employees.

Chrysler, which posted a $680 million loss in 2006, offered U.S. blue-collar workers at certain plants a retirement package that includes a $70,000 lump sum plus health care and pension benefits. Workers with less seniority were also offered buyout packages worth $100,000 and six months of limited health benefits.

Both programs were made available in early March after Chrysler revealed its comeback strategy on Feb. 14.

Chrysler isn't providing an update on the number of applications it received to date from workers ready to leave the company. But by early April, Chrysler was well on its way to reaching its target of 5,875 reduced hourly positions for the year.

Some 4,312 hourly employees represented by the United Auto Workers in the U.S. and in Canada -- where Chrysler hopes to shave 2,000 blue-collar jobs -- submitted paperwork to accept the buyouts. Among them are 1,600 Michigan workers.

In total, the automaker wants to eliminate 11,000 union-represented positions by 2009 in the U.S. and Canada as it also moves to cut 400,000 units of production as part of its restructuring. Some 2,000 salaried jobs also will be trimmed.

In addition, Chrysler plans to cut third shifts from Warren Truck plant and its St. Louis factory, and idle its Newark, Del. factory.

Blue-collar workers will learn when they will be let go between April 30 and June 30.

"Our manufacturing facilities will determine when the accepted programs will be activated," said Tinson, based upon the manpower needs of each targeted factory.