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Chrysler Offers Buyout Option To 23,000 U.S. Workers

Chrysler Offers Buyout Option To 23,000 U.S. Workers

By Richard Read's avatar Richard ReadRichard Read November 2nd, 2009

Fiat's Sergio Marchionne

Fiat's Sergio Marchionne

Enlarge Photo

In just two days, Sergio Marchionne will reveal his five-year recovery plan for Chrysler. While much of that plan revolves around slimmed-down lineups, more focused brands, and new and improved products based on Fiat vehicles, it's also likely to involve some tinkering with Chrysler's workforce and infrastructure. Not surprisingly, Chrysler Group has offered to buy out 23,000 of its U.S. workers in an effort to trim the company's overhead and synch labor costs with the company's shrinking roster of facilities. On the upside (for workers, anyway), there may soon be some openings elsewhere in town.  [CNN]

Fiat's Sergio MarchionneEnlarge Photo In just two days, Sergio Marchionne will reveal his five-year recovery plan for Chrysler. While much of that plan revolves around slimmed-down lineups, more focused brands, and new and improved products based on Fiat vehicles, it's also likely to involve some tinkering with Chrysler's workforce and infrastructure. Not surprisingly, Chrysler Group has offered to buy out 23,000 of its U.S. workers in an effort to trim the company's overhead and synch labor costs with the company's shrinking roster of facilities. On the upside (for workers, anyway), there may soon be some openings elsewhere in town.  [CNN]

Tags: Fiat, Chrysler, unions, Chrysler/Fiat, Sergio Marchionne, Auto Union



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Responses (11 total)

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  1. By Matthew #1, Posted: 11/2/2009

    It's good to see that things seem to be working out (this article doesn't mention the details, but Business Week put a nice one out a few days ago). One thing I hope they do (besides what's already been done with their brands) is design a few flagship vehicles (under Fiat/Chrysler badge) that are the FACE of the new company. It should be an entry- & mid-size car, a multi-passenger car (van?) and a sports car. They need to look good, perform better and, most importantly, turn consumer's heads. If they focus a lot on creating this, they can prove to skeptics that they have what it takes to function again.

  2. By sergio #2, Posted: 11/2/2009

    These guys should take the deal. I don't think there is a better one coming given the current market.

  3. By Jezza #3, Posted: 11/2/2009

    Agree with Sergio. What options do these workers have?
    Most will probably have to retrain themselves because manufacturing in the US is dying. Hope things work out for them.

  4. By Sobbing Eleanor #4, Posted: 11/2/2009

    If I recall correctly, about a year ago at this time, Chrysler was oversubscribed with volunteers for what became its last major buyout before bankruptcy.
    I just have to wonder if there's anything left to Chrysler after this last batch. We read a lot of Detroit propaganda about how Fiat is leaving them alone, offering them platforms & letting them make decisions, but unless the entire company had 3x or 4x the number of workers it needed ... is there any meat left at all, or is Chrysler just a hollow shell without the ability to feed itself?

  5. By greedo #5, Posted: 11/2/2009

    Getting capacity back in line with demand is a key step. It's painful, sometimes, but at least this round comes with buyouts.

  6. By Allan #6, Posted: 11/2/2009

    This is just sad. Chrysler needs to pull itself out the way that it did in the 1980s...with one platform, U.S. designed and U.S. built. As good as the LXs are, they're not it. Fiats will sell too but they're strictly niche vehicles.

  7. By Limousine Liberal #7, Posted: 11/2/2009

    Will be interesting to see what they do on the cost side (will many of the employees take the buyout offers?). Fact is, the we are where we are for two reasons: (1) past management mistakes with product devel, marketing, golden parachutes; and (2) completely irresponsible union leadership who won short-term victories at the expense of long-term viability. This is a point in time to see if it wil change.

  8. By Damien Thomas #8, Posted: 11/2/2009

    I was hoping all these new Italian models planned for production in the U.S. would have helped saved these jobs. Looks like the old Chrysler is still here.

  9. By raging moderate #9, Posted: 11/3/2009

    the strategy is simple -put more financial strain on Chrysler- later get more equity for the unions- fantastic!!!

  10. By Forker #10, Posted: 11/3/2009

    Sounds like a reasonable solution to me... Anyway I don't envy the workers in the auto industry at this time.

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